International Seaways (NYSE:INSW) Stock Falls 5.9% Following Insider Selling

Key Points

• International Seaways shares fell 5.9% to about $103.47 after major shareholder Famatown Finance sold roughly 228,000 shares in several recent transactions totaling about $26.5 million.
• Analysts remain broadly bullish, with one Strong Buy, six Buy and one Hold rating; the consensus price target is $109.80, although this implies limited upside from the reported trading level.
• The company’s fundamentals were strong, including quarterly EPS of $5.91 versus a $5.55 estimate, revenue growth of 138.9% year over year and a recently increased quarterly dividend of $5.05, equivalent to a 19.5% annualized yield.

International Seaways Inc. (NYSE:INSW - Get Free Report) fell 5.9% on Monday following insider selling activity. The stock traded as low as $103.86 and last traded at $103.47. 408,878 shares were traded during mid-day trading, a decline of 33% from the average session volume of 608,393 shares. The stock had previously closed at $109.99.

Specifically, major shareholder Finance Ltd Famatown sold 61,216 shares of the firm's stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $117.08, for a total value of $7,167,169.28. Following the transaction, the insider directly owned 6,704,504 shares of the company's stock, valued at $784,963,328.32. This trade represents a 0.90% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Finance Ltd Famatown sold 66,738 shares of the company's stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $117.03, for a total transaction of $7,810,348.14. Following the sale, the insider directly owned 6,765,720 shares of the company's stock, valued at approximately $791,792,211.60. This trade represents a 0.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In related news, major shareholder Finance Ltd Famatown sold 100,000 shares of International Seaways stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $114.97, for a total value of $11,497,000.00. Following the transaction, the insider directly owned 6,832,458 shares of the company's stock, valued at $785,527,696.26. This trade represents a 1.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link.

Analyst Upgrades and Downgrades

Several research analysts have commented on INSW shares. Jefferies Financial Group boosted their price objective on shares of International Seaways from $100.00 to $108.00 and gave the company a "buy" rating in a research report on Thursday, August 13th. BTIG Research raised their target price on International Seaways from $100.00 to $130.00 and gave the company a "buy" rating in a report on Friday, September 18th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $107.00 target price on shares of International Seaways in a report on Tuesday, September 1st. Zacks Research upgraded International Seaways from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, October 7th. Finally, B. Riley Financial boosted their price target on International Seaways from $120.00 to $140.00 and gave the stock a "buy" rating in a report on Monday, October 5th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, International Seaways presently has an average rating of "Buy" and a consensus price target of $109.80.

Key Headlines Impacting International Seaways

Here are the key news stories impacting International Seaways this week:

• Positive Sentiment: Fleet expansion: International Seaways agreed to acquire Bruton for approximately $370 million, adding four very large crude carriers (VLCCs) to its fleet. The deal increases the company’s exposure to the strong crude-tanker market and could support future revenue, cash flow and scale. International Seaways Expands VLCC Fleet Through Combination with Bruton
• Positive Sentiment: The transaction is structured as a combination with Bruton and gives INSW additional modern VLCC capacity without relying solely on organic fleet growth. Analysts and investors may view this favorably if tanker rates remain elevated. International Seaways Agrees $370 Million Deal That Adds Four VLCCs
• Neutral Sentiment: The reported analyst consensus price target is $109.80, suggesting limited upside relative to recent trading levels and indicating that much of the company’s strong tanker outlook may already be reflected in the valuation. Consensus target for International Seaways stock stands at USD 109.80
• Negative Sentiment: Large shareholder selling: Famatown Finance and related major-shareholder transactions reportedly involved roughly $107 million of INSW stock sold over several months, including numerous sales disclosed recently. The scale of the selling can weigh on the shares by increasing supply and raising concerns about a major investor’s near-term confidence, even though it does not change the company’s operations directly. International Seaways owner sells $107 million stake over months

International Seaways Stock Down 5.9%

The company has a market capitalization of $5.13 billion, a price-to-earnings ratio of 6.61, a P/E/G ratio of 0.27 and a beta of -0.14. The company has a debt-to-equity ratio of 0.27, a current ratio of 5.94 and a quick ratio of 5.76. The firm's fifty day moving average price is $105.69 and its 200-day moving average price is $91.22.

International Seaways (NYSE:INSW - Get Free Report) last released its quarterly earnings data on Monday, August 10th. The transportation company reported $5.91 earnings per share for the quarter, beating the consensus estimate of $5.55 by $0.36. The company had revenue of $467.29 million for the quarter, compared to the consensus estimate of $406.38 million. International Seaways had a return on equity of 31.75% and a net margin of 61.98%. International Seaways's revenue for the quarter was up 138.9% on a year-over-year basis. During the same quarter last year, the business posted $1.02 EPS. Sell-side analysts expect that International Seaways Inc. will post 17.08 earnings per share for the current fiscal year.

International Seaways Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, September 10th were given a $5.05 dividend. This is a boost from International Seaways's previous quarterly dividend of $0.12. This represents a $20.20 annualized dividend and a yield of 19.5%. The ex-dividend date was Thursday, September 10th. International Seaways's dividend payout ratio is 129.16%.

Institutional Trading of International Seaways

A number of hedge funds have recently made changes to their positions in the company. Baird Financial Group Inc. increased its position in shares of International Seaways by 5.0% during the second quarter. Baird Financial Group Inc. now owns 248,506 shares of the transportation company's stock worth $19,033,000 after buying an additional 11,835 shares during the period. NewEdge Wealth LLC raised its stake in International Seaways by 43.1% during the first quarter. NewEdge Wealth LLC now owns 24,942 shares of the transportation company's stock worth $1,818,000 after buying an additional 7,511 shares during the last quarter. Man Group plc bought a new position in International Seaways during the second quarter worth $867,000. Two Sigma Securities LLC bought a new position in International Seaways during the second quarter worth $507,000. Finally, Energy Income Partners LLC acquired a new position in International Seaways in the second quarter valued at $4,161,000. 67.29% of the stock is owned by institutional investors and hedge funds.

About International Seaways

International Seaways, Inc NYSE: INSW is a maritime transportation company that owns and operates oceangoing tankers. The company transports crude oil, refined petroleum products and other liquid cargoes for energy producers, commodity traders, refiners and other customers worldwide.

Its fleet includes crude-oil tankers serving major international trade routes, as well as product tankers used to move gasoline, diesel, jet fuel and other refined petroleum products. International Seaways employs a combination of time-charter, voyage-charter and pool arrangements to market its vessels and provide transportation services.

International Seaways was established in 2016 through the separation of the international tanker business from Overseas Shipholding Group.

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