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

Key Points

• Torm shares reached a new 52-week high, trading as high as $36.51 and up 5.6%, with the stock last near $36.65.
• Analysts maintain a generally positive outlook: Torm has an average rating of “Buy” and an average price target of $38.00, though one research firm downgraded the stock from “strong buy” to “buy.”
• Torm raised its quarterly dividend to $2.40 from $0.70, implying an annualized dividend of $9.60 and a yield of about 26%; however, its payout ratio is elevated at 115.49%.

Shares of Torm Plc (NASDAQ:TRMD - Get Free Report) reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $36.51 and last traded at $36.6450, with a volume of 456294 shares changing hands. The stock had previously closed at $34.93.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on TRMD shares. Wall Street Zen downgraded Torm from a "strong-buy" rating to a "buy" rating in a research note on Sunday, September 6th. Evercore restated an "outperform" rating and set a $38.00 price objective on shares of Torm in a research report on Wednesday, August 26th. Finally, Weiss Ratings raised shares of Torm from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $38.00.

Torm Stock Up 5.6%

The stock has a market capitalization of $3.76 billion, a price-to-earnings ratio of 6.07 and a beta of 0.12. The business has a 50-day moving average of $31.03 and a 200-day moving average of $29.96. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.97 and a current ratio of 2.27.

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 company 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 company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 10th will be given a $2.40 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This is a positive change from Torm's previous quarterly dividend of $0.70. This represents a $9.60 dividend on an annualized basis and a yield of 26.0%. Torm's dividend payout ratio is presently 115.49%.

Institutional Inflows and Outflows

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

Torm Company Profile

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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