Teekay Tankers (NYSE:TNK) Shares Down 6.4% - Here's Why

Key Points

• Teekay Tankers shares fell 6.4% to about $84.30, with trading volume 85% below the average daily level.
• The company reported quarterly EPS of $5.56 versus the $5.61 consensus estimate, while revenue of $258.26 million missed expectations of $299.03 million despite rising 32.6% year over year.
• Analysts maintain a “Moderate Buy” consensus, but their $77 average price target is below the current share price; the company also pays a $0.25 quarterly dividend, while insiders have sold more than $1.1 million of stock over the past 90 days.

Teekay Tankers Ltd. (NYSE:TNK - Get Free Report) shares fell 6.4% during trading on Wednesday . The company traded as low as $85.07 and last traded at $84.3040. 66,696 shares traded hands during trading, a decline of 85% from the average daily volume of 449,389 shares. The stock had previously closed at $90.03.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on TNK shares. Weiss Ratings upgraded Teekay Tankers from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, August 6th. Evercore restated an "outperform" rating on shares of Teekay Tankers in a report on Wednesday, July 22nd. Zacks Research lowered Teekay Tankers from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 20th. Wall Street Zen downgraded shares of Teekay Tankers from a "strong-buy" rating to a "buy" rating in a research report on Sunday, August 2nd. Finally, Bank of America boosted their price objective on shares of Teekay Tankers from $69.00 to $75.00 and gave the company an "underperform" rating in a research report on Wednesday, May 20th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $77.00.

Teekay Tankers Stock Performance

The company has a 50-day simple moving average of $76.35 and a two-hundred day simple moving average of $74.59. The firm has a market capitalization of $2.89 billion, a P/E ratio of 4.94 and a beta of -0.22.

Teekay Tankers (NYSE:TNK - Get Free Report) last posted its earnings results on Wednesday, July 29th. The shipping company reported $5.56 earnings per share for the quarter, missing analysts' consensus estimates of $5.61 by ($0.05). The firm had revenue of $258.26 million for the quarter, compared to analysts' expectations of $299.03 million. Teekay Tankers had a return on equity of 22.11% and a net margin of 51.35%.The firm's revenue was up 32.6% on a year-over-year basis. During the same quarter last year, the company posted $1.41 EPS. As a group, research analysts forecast that Teekay Tankers Ltd. will post 15.4 earnings per share for the current fiscal year.

Teekay Tankers Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, August 21st. Investors of record on Monday, August 10th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend was Monday, August 10th. Teekay Tankers's dividend payout ratio is presently 5.89%.

Insiders Place Their Bets

In other Teekay Tankers news, Director Simon Heidi Locke sold 741 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $90.00, for a total value of $66,690.00. Following the completion of the transaction, the director owned 4,000 shares in the company, valued at approximately $360,000. This represents a 15.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Rohit (Rk2) Kapoor sold 6,375 shares of the firm's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $89.28, for a total value of $569,160.00. Following the transaction, the director directly owned 2,126 shares of the company's stock, valued at $189,809.28. This represents a 74.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 14,147 shares of company stock worth $1,138,777. 1.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Fearnley Asset Management AS bought a new stake in Teekay Tankers during the fourth quarter worth about $17,890,000. Mizuho Markets Americas LLC purchased a new position in shares of Teekay Tankers during the first quarter valued at approximately $18,330,000. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Teekay Tankers by 367.2% during the first quarter. Arrowstreet Capital Limited Partnership now owns 217,493 shares of the shipping company's stock valued at $15,947,000 after purchasing an additional 170,940 shares during the last quarter. Ameriprise Financial Inc. boosted its position in shares of Teekay Tankers by 24.6% in the 2nd quarter. Ameriprise Financial Inc. now owns 692,796 shares of the shipping company's stock worth $28,903,000 after purchasing an additional 136,990 shares in the last quarter. Finally, Man Group plc bought a new stake in shares of Teekay Tankers in the 4th quarter worth approximately $5,264,000. 52.67% of the stock is owned by hedge funds and other institutional investors.

About Teekay Tankers

Teekay Tankers Ltd is an oil tanker shipping company that owns and operates a fleet of modern crude oil and petroleum product tankers. Listed on the New York Stock Exchange under the ticker symbol TNK, the company provides seaborne transportation services for crude oil, refined petroleum products and petrochemicals. Its operations range across major global trade lanes, offering a mix of spot market voyages and time-charter contracts to a diverse customer base in the oil and energy sector.

The company's fleet includes a mix of Medium Range (MR), Long Range (LR1 and LR2), Suezmax and Aframax tankers designed to meet various cargo specifications and port restrictions.

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