Torm (NASDAQ:TRMD) Shares Gap Down - Here's Why

Key Points

• Torm Plc shares gapped down from a closing price of $20.49 to $19.94 at market opening, with the last trade recorded at $20.25 and a trading volume of 78,217 shares.
• Analysts are optimistic about Torm, with ratings improvements from "hold" to "buy" by Pareto Securities and "strong-buy" by Fearnley Fonds, while a consensus target price for the stock is set at $27.50.
• In the latest earnings report, Torm exceeded estimates with an EPS of $0.58 and revenue of $208.20 million, showcasing a net margin of 32.20% and a return on equity of 22.40%.

Torm Plc (NASDAQ:TRMD - Get Free Report) shares gapped down prior to trading on Friday . The stock had previously closed at $20.49, but opened at $19.94. Torm shares last traded at $20.25, with a volume of 78,217 shares changing hands.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Evercore ISI set a $23.00 price target on shares of Torm and gave the company an "outperform" rating in a report on Thursday. Pareto Securities raised shares of Torm from a "hold" rating to a "buy" rating in a research note on Wednesday, May 14th. Finally, Fearnley Fonds upgraded Torm from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 6th. One investment analyst has rated the stock with a sell rating, three have issued a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $27.50.

Torm Price Performance

The company has a current ratio of 2.55, a quick ratio of 2.28 and a debt-to-equity ratio of 0.48. The company has a 50 day simple moving average of $18.26 and a 200 day simple moving average of $17.72. The stock has a market cap of $1.94 billion, a P/E ratio of 6.24 and a beta of 0.12.

Torm (NASDAQ:TRMD - Get Free Report) last posted its quarterly earnings data on Thursday, August 14th. The company reported $0.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.57 by $0.01. Torm had a net margin of 24.90% and a return on equity of 15.77%. The company had revenue of $208.20 million for the quarter, compared to the consensus estimate of $207.58 million. Sell-side analysts forecast that Torm Plc will post 6.27 earnings per share for the current fiscal year.

Torm Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Shareholders of record on Friday, August 22nd will be given a dividend of $0.40 per share. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $1.60 annualized dividend and a yield of 7.8%. Torm's payout ratio is 35.45%.

Hedge Funds Weigh In On Torm

A number of large investors have recently modified their holdings of the business. Tower Research Capital LLC TRC bought a new stake in Torm during the second quarter worth about $46,000. Brevan Howard Capital Management LP acquired a new position in shares of Torm during the 2nd quarter worth approximately $7,523,000. Raymond James Financial Inc. bought a new stake in Torm during the second quarter worth $348,000. Glenorchy Capital Ltd raised its holdings in shares of Torm by 3.5% in the 2nd quarter. Glenorchy Capital Ltd now owns 29,670 shares of the company's stock valued at $494,000 after purchasing an additional 1,003 shares during the period. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main raised its stake in Torm by 59.3% in the second quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 51,084 shares of the company's stock valued at $858,000 after buying an additional 19,013 shares during the period. 73.89% of the stock is currently owned by institutional investors and hedge funds.

Torm Company Profile

TORM plc, a shipping company, owns and operates a fleet of product tankers in the United Kingdom. It operates in two operating segments, Tanker and Marine Exhaust. The Tanker segment transports refined oil products, such as gasoline, jet fuel, kerosene, naphtha, and gas oil, as well as dirty petroleum products, including fuel oil.