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

Shares of TORM plc (NASDAQ:TRMD - Get Free Report) gapped up prior to trading on Thursday . The stock had previously closed at $17.42, but opened at $17.89. TORM shares last traded at $17.85, with a volume of 129,961 shares trading hands.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Kepler Capital Markets downgraded TORM from a "hold" rating to a "strong sell" rating in a report on Thursday, March 27th. Fearnley Fonds upgraded TORM from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 6th. Pareto Securities upgraded TORM from a "hold" rating to a "buy" rating in a report on Wednesday, May 14th. Finally, Evercore ISI decreased their price objective on TORM from $25.00 to $23.00 and set an "outperform" rating for the company in a report on Tuesday, April 22nd. One analyst has rated the stock with a sell rating, three have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $27.50.

TORM Price Performance

The firm has a 50 day simple moving average of $16.57 and a 200-day simple moving average of $18.23. The company has a quick ratio of 2.24, a current ratio of 2.47 and a debt-to-equity ratio of 0.51. The company has a market cap of $1.75 billion, a PE ratio of 2.41 and a beta of 0.13.

TORM (NASDAQ:TRMD - Get Free Report) last posted its earnings results on Thursday, May 8th. The company reported $0.62 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.64 by ($0.02). TORM had a net margin of 43.81% and a return on equity of 34.45%. The company had revenue of $214.00 million during the quarter, compared to analysts' expectations of $244.25 million. As a group, research analysts predict that TORM plc will post 6.27 earnings per share for the current fiscal year.

TORM Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, June 4th. Shareholders of record on Thursday, May 22nd were paid a $0.40 dividend. The ex-dividend date of this dividend was Thursday, May 22nd. This represents a $1.60 annualized dividend and a yield of 8.58%. TORM's dividend payout ratio (DPR) is presently 24.47%.

Hedge Funds Weigh In On TORM

Several institutional investors and hedge funds have recently added to or reduced their stakes in TRMD. Apollon Wealth Management LLC grew its stake in shares of TORM by 26.1% during the fourth quarter. Apollon Wealth Management LLC now owns 10,719 shares of the company's stock worth $208,000 after acquiring an additional 2,219 shares during the last quarter. Y Intercept Hong Kong Ltd grew its stake in shares of TORM by 174.3% during the fourth quarter. Y Intercept Hong Kong Ltd now owns 43,219 shares of the company's stock worth $841,000 after acquiring an additional 27,465 shares during the last quarter. U S Global Investors Inc. grew its stake in shares of TORM by 26.3% during the fourth quarter. U S Global Investors Inc. now owns 12,620 shares of the company's stock worth $245,000 after acquiring an additional 2,625 shares during the last quarter. Jones Financial Companies Lllp grew its stake in shares of TORM by 49.5% during the fourth quarter. Jones Financial Companies Lllp now owns 5,859 shares of the company's stock worth $114,000 after acquiring an additional 1,939 shares during the last quarter. Finally, SBI Securities Co. Ltd. purchased a new stake in shares of TORM during the fourth quarter worth about $1,093,000. Hedge funds and other institutional investors own 73.89% of the company's stock.

About TORM

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.