Torm (NASDAQ:TRMD) Shares Gap Down - What's Next?

Key Points

• Torm shares fell sharply at the open, dropping from a previous close of $37.12 to $35.54 and last trading near $35.30.
• Analysts remain generally positive, with the stock carrying an average “Buy” rating and a $38.00 price target; Weiss Ratings and Wall Street Zen recently upgraded their views.
• Torm reported quarterly revenue of $662.8 million but narrowly missed EPS expectations, while raising its quarterly dividend to $2.40 per share—an annualized yield of about 27.1%.

Torm Plc (NASDAQ:TRMD - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $37.12, but opened at $35.54. Torm shares last traded at $35.3030, with a volume of 447,199 shares.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Weiss Ratings raised shares of Torm from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, September 11th. Wall Street Zen raised shares of Torm from a "buy" rating to a "strong-buy" rating in a research report on Saturday. Finally, Evercore reissued an "outperform" rating and issued a $38.00 target price on shares of Torm in a research note on Wednesday, August 26th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average price target of $38.00.

Torm Price Performance

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 business has a fifty day moving average of $31.70 and a 200 day moving average of $30.15. The stock has a market cap of $3.62 billion, a PE ratio of 5.84 and a beta of 0.12.

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

Torm Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 10th will be given a dividend of $2.40 per share. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $9.60 annualized dividend and a dividend yield of 27.1%. This is an increase from Torm's previous quarterly dividend of $0.70. Torm's dividend payout ratio is currently 115.49%.

Hedge Funds Weigh In On Torm

A number of hedge funds have recently added to or reduced their stakes in TRMD. Pictet Asset Management Holding SA raised its stake in shares of Torm by 3.3% in the 1st quarter. Pictet Asset Management Holding SA now owns 15,214 shares of the company's stock worth $431,000 after buying an additional 479 shares in the last quarter. Midwest Professional Planners LTD. boosted its stake in Torm by 0.5% during the first quarter. Midwest Professional Planners LTD. now owns 91,505 shares of the company's stock valued at $2,553,000 after buying an additional 495 shares in the last quarter. Optiver Holding B.V. bought a new position in Torm during the first quarter valued at about $67,000. PSI Advisors LLC raised its position in Torm by 6.6% in the fourth quarter. PSI Advisors LLC now owns 59,701 shares of the company's stock worth $1,169,000 after acquiring an additional 3,707 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd lifted its holdings in Torm by 33.8% in the 1st quarter. Y Intercept Hong Kong Ltd now owns 19,340 shares of the company's stock valued at $540,000 after acquiring an additional 4,882 shares during the last quarter. Institutional investors and hedge funds 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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