Torm (NASDAQ:TRMD) Reaches New 52-Week High - Still a Buy?

Key Points

• Torm shares reached a new 52-week high of $35.42 and were trading about 3.5% higher, with the stock’s market capitalization at roughly $3.61 billion.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $38.00.
• Torm reported quarterly revenue of $662.8 million but slightly missed EPS estimates, while sharply raising its quarterly dividend to $2.40 per share, implying a 27.1% yield.

Torm Plc (NASDAQ:TRMD - Get Free Report) shares reached a new 52-week high on Friday . The stock traded as high as $35.42 and last traded at $35.3720, with a volume of 326656 shares. The stock had previously closed at $34.18.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the stock. Evercore reiterated an "outperform" rating and set a $38.00 price target on shares of Torm in a research report on Wednesday, August 26th. Wall Street Zen upgraded Torm from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 29th. Weiss Ratings upgraded Torm from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, August 28th. Finally, Pareto Securities downgraded Torm from a "hold" rating to a "hold" rating in a report on Wednesday, May 13th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, Torm currently has a consensus rating of "Moderate Buy" and an average price target of $38.00.

Torm Trading Up 3.5%

The company has a current ratio of 2.27, a quick ratio of 1.97 and a debt-to-equity ratio of 0.33. The firm has a market capitalization of $3.61 billion, a price-to-earnings ratio of 5.83 and a beta of 0.12. The firm's 50-day moving average is $29.76 and its 200 day moving average is $29.50.

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

Torm Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 10th will be issued a dividend of $2.40 per share. This represents a $9.60 annualized dividend and a yield of 27.1%. The ex-dividend date of this dividend is Thursday, September 10th. This is a boost from Torm's previous quarterly dividend of $0.70. Torm's dividend payout ratio (DPR) is presently 33.61%.

Institutional Investors Weigh In On Torm

Institutional investors and hedge funds have recently made changes to their positions in the stock. Allianz Asset Management GmbH acquired a new position in shares of Torm in the second quarter worth approximately $267,000. denkapparat Operations GmbH increased its position in Torm by 63.8% during the 2nd quarter. denkapparat Operations GmbH now owns 23,276 shares of the company's stock valued at $607,000 after purchasing an additional 9,064 shares during the period. TD Waterhouse Canada Inc. raised its holdings in Torm by 37.3% during the 2nd 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 during the last quarter. Headlands Technologies LLC raised its holdings in Torm by 75.3% during the 2nd quarter. Headlands Technologies LLC now owns 15,130 shares of the company's stock worth $394,000 after purchasing an additional 6,501 shares during the last quarter. Finally, Assenagon Asset Management S.A. bought a new position in Torm during the 2nd quarter worth approximately $2,632,000. Institutional investors and hedge funds own 73.89% of the company's stock.

Torm Company Profile

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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