Torm (NASDAQ:TRMD) Hits New 52-Week High - Here's Why

Key Points

• Torm shares hit a new 52-week high of $41.64, significantly above the previous close of $39.94, amid positive analyst sentiment. The stock carries an average “Buy” rating, although the average price target is $38.00.
• Torm reported quarterly revenue of $662.8 million, well above estimates, but earnings per share of $3.25 narrowly missed the $3.31 consensus forecast.
• The company raised its quarterly dividend to $2.40, implying a $9.60 annualized payout and a 23.2% yield. However, its dividend payout ratio stands at 115.32%, while insiders have recently sold shares.

Torm Plc (NASDAQ:TRMD - Get Free Report)'s share price reached a new 52-week high on Monday. The company traded as high as $41.64 and last traded at $41.2310, with a volume of 210,639 shares changing hands. The stock had previously closed at $39.94.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the stock. Evercore restated an "outperform" rating and set a $38.00 price objective on shares of Torm in a report on Wednesday, August 26th. Weiss Ratings raised Torm from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday. Finally, Wall Street Zen upgraded Torm from a "buy" rating to a "strong-buy" rating in a research report on Saturday, September 19th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of $38.00.

Torm Price Performance

The stock has a market cap of $4.23 billion, a PE ratio of 6.84 and a beta of 0.07. The business has a fifty day simple moving average of $33.88 and a two-hundred day simple moving average of $31.20. The company has a current ratio of 2.27, a quick ratio of 1.97 and a debt-to-equity ratio of 0.33.

Torm (NASDAQ:TRMD - Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The company reported $3.25 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.31 by ($0.06). The firm had revenue of $662.80 million during the quarter, compared to the consensus estimate of $499.01 million. Torm had a return on equity of 27.24% and a net margin of 35.51%.

Torm 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 issued a $2.40 dividend. This represents a $9.60 annualized dividend and a yield of 23.2%. This is a boost from Torm's previous quarterly dividend of $0.70. The ex-dividend date of this dividend was Thursday, September 10th. Torm's dividend payout ratio is presently 115.32%.

Insider Activity at Torm

In other news, CFO Kim Balle sold 7,533 shares of the company's stock in a transaction on Tuesday, September 22nd. The stock was sold at an average price of $36.35, for a total transaction of $273,824.55. Following the transaction, the chief financial officer directly owned 510 shares of the company's stock, valued at $18,538.50. This represents a 93.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Over the last three months, insiders sold 42,533 shares of company stock valued at $1,643,225. 0.37% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Torm

Several hedge funds and other institutional investors have recently modified their holdings of TRMD. Optiver Holding B.V. purchased a new position in Torm in the first quarter worth about $67,000. Bank of New York Mellon Corp bought a new stake in shares of Torm during the 1st quarter valued at $228,000. The Manufacturers Life Insurance Company purchased a new stake in shares of Torm in the 1st quarter worth $252,000. Allianz Asset Management GmbH purchased a new position in Torm during the second quarter valued at $267,000. Finally, Headlands Technologies LLC grew its holdings in Torm by 75.3% during the second quarter. Headlands Technologies LLC now owns 15,130 shares of the company's stock valued at $394,000 after purchasing an additional 6,501 shares during the period. 73.89% of the stock is owned by institutional investors.

About Torm

TORM plc is a Denmark-based international shipping company that owns and operates product tankers. The company transports refined petroleum products, including gasoline, diesel, jet fuel and naphtha, as well as other clean petroleum and chemical products for customers worldwide.

TORM manages a fleet of tankers across several size classes, including medium-range and larger vessels. Its activities cover commercial and technical vessel management, chartering, and the transportation of liquid cargoes between major production, refining and consumption markets.

Founded in 1889, TORM has its roots in Denmark and has developed into a global product tanker operator serving routes across the Atlantic, Pacific, Middle East and Asia-Pacific regions.

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