Torm (NASDAQ:TRMD) Sees Unusually-High Trading Volume - Here's What Happened

Key Points

• Torm shares saw elevated trading activity, with 789,036 shares changing hands, while the stock rose to $34.886 from a previous close of $34.42.
• Analyst sentiment remains positive: Torm has an average rating of “Buy” and a consensus price target of $38, with several analysts recently upgrading or reaffirming bullish ratings.
• Torm increased its quarterly dividend to $2.40 per share, implying an annualized yield of 27.6%, although its payout ratio rose to 115.32%. The company recently reported $3.25 in quarterly EPS, slightly below estimates, but revenue exceeded expectations.

Torm Plc (NASDAQ:TRMD - Get Free Report) saw unusually-strong trading volume on Thursday . 789,036 shares traded hands during trading, a decline of 10% from the previous session's volume of 881,134 shares.The stock last traded at $34.8860 and had previously closed at $34.42.

Analysts Set New Price Targets

Several analysts recently weighed in on the company. 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 "buy (b-)" rating in a research note on Friday, September 11th. Finally, Wall Street Zen upgraded shares of Torm from a "buy" rating to a "strong-buy" rating in a research report on Saturday, September 19th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Buy" and a consensus price target of $38.00.

Torm Price Performance

The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.97 and a current ratio of 2.27. The firm has a fifty day simple moving average of $31.90 and a 200 day simple moving average of $30.22. The company has a market capitalization of $3.55 billion, a PE ratio of 5.72 and a beta of 0.12.

Torm (NASDAQ:TRMD - Get Free Report) last issued its quarterly earnings data 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 for the quarter, compared to analysts' expectations 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 declared a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 10th will be issued a $2.40 dividend. This is an increase from Torm's previous quarterly dividend of $0.70. This represents a $9.60 dividend on an annualized basis and a dividend yield of 27.6%. The ex-dividend date of this dividend is Thursday, September 10th. Torm's dividend payout ratio is 115.32%.

Insider Transactions at Torm

In related news, CFO Kim Balle sold 20,000 shares of Torm stock in a transaction dated Friday, September 18th. The stock was sold at an average price of $39.16, for a total transaction of $783,200.00. Following the completion of the sale, the chief financial officer owned 23,043 shares of the company's stock, valued at $902,363.88. The trade was a 46.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. In the last ninety days, insiders sold 42,533 shares of company stock valued at $1,643,225. Company insiders own 0.37% of the company's stock.

Institutional Investors Weigh In On Torm

Hedge funds have recently bought and sold shares of the stock. Norges Bank purchased a new position in shares of Torm in the 4th quarter valued at about $24,830,000. Sei Investments Co. purchased a new position in Torm during the first quarter worth approximately $7,705,000. Marnell Management LLC acquired a new stake in Torm in the fourth quarter valued at approximately $4,815,000. Fearnley Asset Management AS acquired a new stake in Torm in the fourth quarter valued at approximately $4,048,000. Finally, Folketrygdfondet increased its position in shares of Torm by 174.0% in the fourth quarter. Folketrygdfondet now owns 238,662 shares of the company's stock valued at $4,673,000 after buying an additional 151,563 shares in the last quarter. Hedge funds and other institutional investors own 73.89% of the company's stock.

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.

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