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

Key Points

• Torm shares gapped down premarket, opening at $25.75 versus the prior close of $27.23 and last trading around $24.99 on a volume of about 743,257 shares.
• Dividend increase: the company raised its quarterly payout to $0.70 (annualized $2.80), yielding about 11.2% with an ex-dividend date of March 12 and a payout ratio of ~71.8%.
• Mixed analyst view but $34 consensus target: analysts' ratings range from Sell to Strong Buy with an average "Hold" and a $34 consensus target, while Torm recently beat quarterly EPS ($0.87 vs. $0.83) and revenue expectations.

Shares of Torm Plc (NASDAQ:TRMD - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $27.23, but opened at $25.75. Torm shares last traded at $24.9880, with a volume of 743,257 shares.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on TRMD shares. Wall Street Zen upgraded shares of Torm from a "hold" rating to a "buy" rating in a report on Saturday, March 7th. Fearnley Fonds upgraded shares of Torm from a "hold" rating to a "strong-buy" rating in a report on Thursday, November 13th. Finally, Evercore reaffirmed an "outperform" rating and issued a $34.00 target price on shares of Torm in a research note on Thursday, February 26th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Torm currently has an average rating of "Hold" and a consensus target price of $34.00.

Torm Price Performance

The stock has a market cap of $2.35 billion, a P/E ratio of 8.81 and a beta of -0.01. The company has a 50 day simple moving average of $25.03 and a 200 day simple moving average of $22.66. The company has a current ratio of 1.33, a quick ratio of 1.16 and a debt-to-equity ratio of 0.32.

Torm (NASDAQ:TRMD - Get Free Report) last issued its quarterly earnings results on Thursday, February 26th. The company reported $0.87 earnings per share for the quarter, topping the consensus estimate of $0.83 by $0.04. Torm had a net margin of 21.29% and a return on equity of 13.26%. The company had revenue of $347.60 million during the quarter, compared to analysts' expectations of $236.21 million. Sell-side analysts forecast that Torm Plc will post 6.27 earnings per share for the current fiscal year.

Torm Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Thursday, March 12th will be given a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 11.2%. This is an increase from Torm's previous quarterly dividend of $0.62. The ex-dividend date of this dividend is Thursday, March 12th. Torm's payout ratio is 71.83%.

Institutional Investors Weigh In On Torm

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Norges Bank acquired a new stake in shares of Torm in the second quarter valued at about $20,998,000. Folketrygdfondet acquired a new position in Torm during the third quarter valued at approximately $1,796,000. Journey Advisory Group LLC acquired a new position in Torm during the third quarter valued at approximately $2,920,000. Counterpoint Mutual Funds LLC bought a new position in Torm in the third quarter valued at approximately $496,000. Finally, Weaver Consulting Group bought a new position in Torm in the second quarter valued at approximately $167,000. 73.89% of the stock is owned by institutional investors.

Torm Company Profile

Torm A/S NASDAQ: TRMD is an international shipping company specializing in the transportation of refined petroleum products. The firm owns and operates a modern fleet of product tankers, including both Handysize and MR vessels, which are designed to carry a broad range of clean petroleum cargoes such as gasoline, jet fuel and diesel. Torm's core business revolves around voyage and time-charter contracts with major oil companies, trading houses and other energy sector clients around the world.

The company's fleet is deployed on global trade routes, with particular focus on major refining and consumption regions in Europe, North America and Asia.

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