Teekay Tankers (NYSE:TNK) Trading Down 5% - Time to Sell?

Key Points

• Teekay Tankers shares fell 5% in mid-day trading, slipping to around $68.07 after trading as low as $68.74, on volume far below normal. The move came after the stock had closed at $71.69 the prior session.
• Analyst sentiment remains mixed but generally positive, with the stock carrying a Moderate Buy consensus and an average price target of $77. Recent ratings included both upgrades and downgrades, with Evercore maintaining an $86 target and Bank of America raising its target to $75 while keeping an underperform rating.
• The company reported strong recent fundamentals, including $3.69 EPS in its latest quarter, a 42.6% net margin, and a low payout ratio on its dividend. Teekay Tankers also paid a quarterly dividend of $0.25 per share, equal to a 1.5% annualized yield.

Teekay Tankers Ltd. (NYSE:TNK - Get Free Report) fell 5% during mid-day trading on Thursday . The stock traded as low as $68.74 and last traded at $68.0720. Approximately 15,721 shares changed hands during trading, a decline of 97% from the average daily volume of 474,063 shares. The stock had previously closed at $71.69.

Analyst Upgrades and Downgrades

TNK has been the subject of a number of analyst reports. Wall Street Zen lowered shares of Teekay Tankers from a "strong-buy" rating to a "buy" rating in a research note on Saturday, June 20th. Weiss Ratings reissued a "buy (b-)" rating on shares of Teekay Tankers in a research report on Wednesday, June 24th. Evercore restated an "outperform" rating and issued a $86.00 price target on shares of Teekay Tankers in a research report on Friday, May 15th. Bank of America raised their price objective on shares of Teekay Tankers from $69.00 to $75.00 and gave the stock an "underperform" rating in a research note on Wednesday, May 20th. Finally, Zacks Research upgraded shares of Teekay Tankers from a "hold" rating to a "strong-buy" rating in a research report on Thursday, May 21st. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $77.00.

Teekay Tankers Stock Down 4.9%

The firm has a 50-day moving average of $74.31 and a two-hundred day moving average of $69.70. The stock has a market capitalization of $2.36 billion, a price-to-earnings ratio of 5.54 and a beta of -0.22.

Teekay Tankers (NYSE:TNK - Get Free Report) last announced its quarterly earnings data on Tuesday, March 31st. The shipping company reported $3.69 EPS for the quarter. Teekay Tankers had a return on equity of 16.34% and a net margin of 42.60%. As a group, sell-side analysts predict that Teekay Tankers Ltd. will post 13.75 EPS for the current year.

Teekay Tankers Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders of record on Tuesday, May 26th were given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend was Tuesday, May 26th. Teekay Tankers's dividend payout ratio is 8.13%.

Insider Activity at Teekay Tankers

In related news, Director David Schellenberg sold 7,031 shares of the business's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $71.53, for a total transaction of $502,927.43. Following the transaction, the director directly owned 7,445 shares of the company's stock, valued at approximately $532,540.85. The trade was a 48.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 1.90% of the company's stock.

Institutional Investors Weigh In On Teekay Tankers

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Mirae Asset Global Investments Co. Ltd. purchased a new position in shares of Teekay Tankers during the 4th quarter valued at $28,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Teekay Tankers during the fourth quarter worth $33,000. Global Trust Asset Management LLC purchased a new stake in shares of Teekay Tankers during the first quarter worth $46,000. Leonteq Securities AG acquired a new stake in Teekay Tankers during the fourth quarter valued at $34,000. Finally, Aster Capital Management DIFC Ltd boosted its position in Teekay Tankers by 2,948.6% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 1,067 shares of the shipping company's stock valued at $57,000 after purchasing an additional 1,032 shares during the last quarter. Hedge funds and other institutional investors own 52.67% of the company's stock.

Teekay Tankers Company Profile

Teekay Tankers Ltd is an oil tanker shipping company that owns and operates a fleet of modern crude oil and petroleum product tankers. Listed on the New York Stock Exchange under the ticker symbol TNK, the company provides seaborne transportation services for crude oil, refined petroleum products and petrochemicals. Its operations range across major global trade lanes, offering a mix of spot market voyages and time-charter contracts to a diverse customer base in the oil and energy sector.

The company's fleet includes a mix of Medium Range (MR), Long Range (LR1 and LR2), Suezmax and Aframax tankers designed to meet various cargo specifications and port restrictions.

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