Torm (NASDAQ:TRMD) Shares Gap Up - Should You Buy?

Key Points

• Torm Plc's share price opened at $22.80, up from a previous close of $22.04, indicating positive market movement with a trading volume of 105,664 shares.
• Wall Street analysts have mixed ratings on Torm, with two analysts giving a "Buy" rating, two a "Hold," and one a "Sell," while the stock has a consensus price target of $27.50.
• Torm recently declared a quarterly dividend of $0.40 per share, representing a 7.1% dividend yield, with a payout ratio of 35.45%.

Torm Plc (NASDAQ:TRMD - Get Free Report) shares gapped up prior to trading on Friday . The stock had previously closed at $22.04, but opened at $22.80. Torm shares last traded at $22.65, with a volume of 105,664 shares.

Analysts Set New Price Targets

Several research analysts have recently commented on TRMD shares. Pareto Securities lowered Torm from a "buy" rating to a "hold" rating in a research report on Tuesday, August 19th. Fearnley Fonds cut Torm from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 3rd. Finally, Evercore ISI set a $23.00 price objective on Torm and gave the stock an "outperform" rating in a report on Thursday, August 14th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $27.50.

Torm Price Performance

The business has a fifty day moving average price of $20.06 and a 200 day moving average price of $18.09. The company has a market cap of $2.19 billion, a price-to-earnings ratio of 7.05 and a beta of 0.12. The company has a debt-to-equity ratio of 0.46, a quick ratio of 2.30 and a current ratio of 2.57.

Torm (NASDAQ:TRMD - Get Free Report) last posted its quarterly earnings data on Thursday, August 14th. The company reported $0.58 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 15.73%. The company had revenue of $208.20 million for the quarter, compared to analyst estimates of $207.58 million. As a group, research analysts anticipate that Torm Plc will post 6.27 earnings per share for the current year.

Torm Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 3rd. Investors of record on Friday, August 22nd were issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 6.9%. The ex-dividend date was Friday, August 22nd. Torm's dividend payout ratio is currently 35.45%.

Hedge Funds Weigh In On Torm

Several hedge funds have recently modified their holdings of the stock. Deutsche Bank AG raised its stake in Torm by 14.2% during the fourth quarter. Deutsche Bank AG now owns 88,381 shares of the company's stock valued at $1,719,000 after purchasing an additional 10,970 shares in the last quarter. Millennium Management LLC raised its position in shares of Torm by 439.0% in the 4th quarter. Millennium Management LLC now owns 430,399 shares of the company's stock valued at $8,371,000 after purchasing an additional 350,555 shares during the last quarter. Mackenzie Financial Corp raised its position in Torm by 225.7% during the 4th quarter. Mackenzie Financial Corp now owns 36,177 shares of the company's stock worth $704,000 after buying an additional 25,071 shares during the last quarter. CWA Asset Management Group LLC increased its holdings in shares of Torm by 63.9% during the 1st quarter. CWA Asset Management Group LLC now owns 65,159 shares of the company's stock valued at $1,074,000 after purchasing an additional 25,399 shares in the last quarter. Finally, PSI Advisors LLC grew its stake in Torm by 23.7% in the 1st quarter. PSI Advisors LLC now owns 52,387 shares of the company's stock valued at $863,000 after acquiring an additional 10,020 shares during the period. Hedge funds and other institutional investors own 73.89% of the company's stock.

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.