Torm (NASDAQ:TRMD) Reaches New 1-Year High - Here's What Happened

Key Points

• Torm shares reached a new 52-week high of $38.80, up from a previous close of $36.15. Analysts’ consensus rating is “Moderate Buy,” with a $38.00 average price target.
• The company reported quarterly revenue of $662.8 million, well above estimates, though earnings per share of $3.25 narrowly missed the $3.31 consensus forecast.
• Torm raised its quarterly dividend to $2.40 from $0.70, implying a $9.60 annualized payout and a 25.2% yield, although its payout ratio stands above 100%.

Torm Plc (NASDAQ:TRMD - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Wednesday. The company traded as high as $38.80 and last traded at $38.7420, with a volume of 370116 shares changing hands. The stock had previously closed at $36.15.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the company. Weiss Ratings cut Torm from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday. Evercore reiterated an "outperform" rating and issued a $38.00 target price on shares of Torm in a research note on Wednesday, August 26th. Finally, Wall Street Zen raised shares of Torm from a "buy" rating to a "strong-buy" rating in a research report on Saturday, September 19th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $38.00.

Torm Stock Performance

The business has a 50-day moving average price of $32.36 and a 200-day moving average price of $30.41. The company has a quick ratio of 1.97, a current ratio of 2.27 and a debt-to-equity ratio of 0.33. The firm has a market capitalization of $3.89 billion, a price-to-earnings ratio of 6.25 and a beta of 0.12.

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

Torm Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, September 10th were issued a $2.40 dividend. This is a boost from Torm's previous quarterly dividend of $0.70. This represents a $9.60 annualized dividend and a yield of 25.2%. The ex-dividend date of this dividend was Thursday, September 10th. Torm's dividend payout ratio is 115.32%.

Insider Buying and Selling at Torm

In other news, CFO Kim Balle sold 7,533 shares of the business's stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $36.35, for a total transaction of $273,824.55. Following the sale, the chief financial officer owned 510 shares in the company, valued at approximately $18,538.50. The trade was a 93.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders sold a total of 42,533 shares of company stock worth $1,643,225 in the last 90 days. 0.37% of the stock is currently owned by insiders.

Institutional Trading of Torm

A number of institutional investors have recently bought and sold shares of the stock. Arrowstreet Capital Limited Partnership grew its position in Torm by 0.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,064,258 shares of the company's stock worth $86,032,000 after purchasing an additional 21,280 shares during the last quarter. Norges Bank purchased a new position in shares of Torm in the fourth quarter worth $24,830,000. Sei Investments Co. acquired a new stake in shares of Torm during the first quarter worth $7,705,000. Marnell Management LLC acquired a new stake in shares of Torm during the fourth quarter worth $4,815,000. Finally, Folketrygdfondet lifted its stake in shares of Torm by 174.0% during the fourth quarter. Folketrygdfondet now owns 238,662 shares of the company's stock worth $4,673,000 after buying an additional 151,563 shares during the period. 73.89% of the stock is currently owned by institutional investors and hedge funds.

About Torm

TORM plc is an international product tanker company that transports refined oil products and other energy-related cargoes by sea. Its vessels carry products such as gasoline, jet fuel, diesel and other clean petroleum products between production, storage and consumption markets.

The company operates a fleet of product tankers across several size categories, including long-range, medium-range and Handysize vessels. TORM provides seaborne transportation services to oil companies, trading houses and other commercial customers, with operations serving major shipping routes and energy markets worldwide.

TORM traces its history to 1889 and is headquartered in Copenhagen, Denmark.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.