Torm (NASDAQ:TRMD) Sees Large Volume Increase - Here's What Happened

Key Points

• Torm shares rose 2.9% to $40.08 amid heavy trading, with 648,506 shares changing hands—33% fewer than in the prior session.
• Analyst sentiment remains a “Moderate Buy,” with a $38 consensus price target; ratings included a Weiss downgrade to “Hold,” an Evercore “Outperform,” and a Wall Street Zen upgrade to “Strong Buy.”
• Torm reported quarterly EPS of $3.25, slightly below the $3.31 estimate, while revenue exceeded expectations. The company increased its quarterly dividend to $2.40, implying a 24% annualized yield, though its 115.49% payout ratio exceeds earnings.

Torm Plc (NASDAQ:TRMD - Get Free Report) saw unusually-strong trading volume on Thursday. 648,506 shares traded hands during mid-day trading, a decline of 33% from the previous session's volume of 968,866 shares. The stock last traded at $40.0830 and had previously closed at $38.92.

Analyst Ratings Changes

A number of analysts have commented on the stock. Weiss Ratings downgraded shares of Torm from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, September 25th. Evercore restated an "outperform" rating and issued a $38.00 price target on shares of Torm in a research report on Wednesday, August 26th. Finally, Wall Street Zen raised Torm from a "buy" rating to a "strong-buy" rating in a report on Saturday, September 19th. One investment 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 company. According to MarketBeat.com, Torm currently has an average rating of "Moderate Buy" and a consensus price target of $38.00.

Torm Trading Up 2.9%

The stock has a market capitalization of $4.09 billion, a price-to-earnings ratio of 6.61 and a beta of 0.07. The company's 50-day moving average is $33.49 and its 200-day moving average is $31.01. The company has a quick ratio of 1.97, a current ratio of 2.27 and a debt-to-equity ratio of 0.33.

Torm (NASDAQ:TRMD - Get Free Report) last posted 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 firm 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 disclosed a quarterly dividend, which was paid on Thursday, September 24th. Investors of record on Thursday, September 10th were issued a $2.40 dividend. This is an increase from Torm's previous quarterly dividend of $0.70. The ex-dividend date was Thursday, September 10th. This represents a $9.60 annualized dividend and a yield of 24.0%. Torm's payout ratio is presently 115.49%.

Insider Activity

In other news, CFO Kim Balle sold 7,533 shares of the company's stock in a transaction that occurred on Tuesday, September 22nd. The shares were sold at an average price of $36.35, for a total value of $273,824.55. Following the transaction, the chief financial officer directly owned 510 shares in the company, valued at approximately $18,538.50. This represents a 93.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Over the last quarter, insiders have sold 42,533 shares of company stock valued at $1,643,225. 0.37% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Torm

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

Torm Company Profile

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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