Torm (NASDAQ:TRMD) Reaches New 12-Month High - Here's What Happened

Key Points

• Torm shares reached a new 52-week high of $35.94 and were last trading at $35.46, up 1.5%. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $38.00.
• Torm reported quarterly earnings of $3.25 per share, slightly below the $3.31 consensus estimate, while revenue of $662.8 million substantially exceeded expectations of $499.01 million.
• The company raised its quarterly dividend from $0.70 to $2.40 per share, equivalent to $9.60 annually and a 27.1% yield, with a 33.61% payout ratio.

Torm Plc (NASDAQ:TRMD - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $35.94 and last traded at $35.46, with a volume of 1550172 shares traded. The stock had previously closed at $34.94.

Analyst Ratings Changes

A number of equities analysts have commented on TRMD shares. Pareto Securities downgraded shares of Torm from a "hold" rating to a "hold" rating in a research note on Wednesday, May 13th. Evercore restated an "outperform" rating and set a $38.00 price target on shares of Torm in a report on Wednesday, August 26th. Weiss Ratings raised shares of Torm from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, August 28th. Finally, Wall Street Zen lowered shares of Torm from a "strong-buy" rating to a "buy" rating in a research report on Sunday. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $38.00.

Torm Trading Up 1.5%

The company has a debt-to-equity ratio of 0.33, a current ratio of 2.27 and a quick ratio of 1.97. The firm has a market cap of $3.62 billion, a PE ratio of 5.84 and a beta of 0.12. The company's 50 day moving average price is $30.47 and its 200 day moving average price is $29.75.

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

Torm Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th will be paid a $2.40 dividend. The ex-dividend date is Thursday, September 10th. This is an increase from Torm's previous quarterly dividend of $0.70. This represents a $9.60 annualized dividend and a dividend yield of 27.1%. Torm's payout ratio is 33.61%.

Hedge Funds Weigh In On Torm

Several hedge funds and other institutional investors have recently made changes to their positions in TRMD. Squarepoint Ops LLC lifted its stake in Torm by 180.7% in the second quarter. Squarepoint Ops LLC now owns 22,214 shares of the company's stock worth $579,000 after acquiring an additional 14,300 shares during the last quarter. Allianz Asset Management GmbH acquired a new stake in shares of Torm in the 2nd quarter valued at $267,000. denkapparat Operations GmbH grew its stake in shares of Torm by 63.8% during the second quarter. denkapparat Operations GmbH now owns 23,276 shares of the company's stock worth $607,000 after purchasing an additional 9,064 shares in the last quarter. TD Waterhouse Canada Inc. grew its stake in shares of Torm by 37.3% during the second quarter. TD Waterhouse Canada Inc. now owns 28,852 shares of the company's stock worth $757,000 after purchasing an additional 7,836 shares in the last quarter. Finally, Headlands Technologies LLC increased its holdings in Torm by 75.3% in the second quarter. Headlands Technologies LLC now owns 15,130 shares of the company's stock valued at $394,000 after buying an additional 6,501 shares during the last quarter. Hedge funds and other institutional investors own 73.89% of the company's stock.

About Torm

Torm A/S NASDAQ: TRMD is an international shipping company specializing in the transportation of refined petroleum products. The firm owns and operates a modern fleet of product tankers, including both Handysize and MR vessels, which are designed to carry a broad range of clean petroleum cargoes such as gasoline, jet fuel and diesel. Torm's core business revolves around voyage and time-charter contracts with major oil companies, trading houses and other energy sector clients around the world.

The company's fleet is deployed on global trade routes, with particular focus on major refining and consumption regions in Europe, North America and Asia.

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