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

TORM plc (NASDAQ:TRMD - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $15.98, but opened at $16.77. TORM shares last traded at $16.60, with a volume of 324,227 shares changing hands.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on TRMD shares. Kepler Capital Markets cut TORM from a "hold" rating to a "strong sell" rating in a research report on Thursday, March 27th. Fearnley Fonds raised TORM from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 6th. Pareto Securities raised TORM from a "hold" rating to a "buy" rating in a research report on Wednesday, May 14th. Finally, Evercore ISI reduced their price objective on TORM from $25.00 to $23.00 and set an "outperform" rating for the company in a research note on Tuesday, April 22nd. One equities research analyst has rated the stock with a sell rating, three have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $27.50.

TORM Stock Down 0.1%

The stock has a market capitalization of $1.55 billion, a PE ratio of 2.14 and a beta of 0.12. The firm has a 50 day moving average of $16.28 and a two-hundred day moving average of $18.51. The company has a current ratio of 2.47, a quick ratio of 2.24 and a debt-to-equity ratio of 0.51.

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

TORM Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 4th. Shareholders of record on Thursday, May 22nd will be issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 9.69%. The ex-dividend date is Thursday, May 22nd. TORM's dividend payout ratio (DPR) is presently 24.47%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. NewEdge Advisors LLC increased its position in TORM by 39.9% during the 1st quarter. NewEdge Advisors LLC now owns 16,740 shares of the company's stock worth $276,000 after purchasing an additional 4,776 shares in the last quarter. Royal Bank of Canada increased its holdings in TORM by 1,346.6% in the first quarter. Royal Bank of Canada now owns 87,285 shares of the company's stock valued at $1,438,000 after buying an additional 81,251 shares during the last quarter. Wealth Preservation Advisors LLC bought a new stake in TORM in the first quarter valued at about $69,000. Compound Planning Inc. increased its holdings in TORM by 22.4% in the first quarter. Compound Planning Inc. now owns 23,603 shares of the company's stock valued at $389,000 after buying an additional 4,312 shares during the last quarter. Finally, Fox Run Management L.L.C. boosted its stake in TORM by 74.0% in the first quarter. Fox Run Management L.L.C. now owns 26,260 shares of the company's stock valued at $433,000 after acquiring an additional 11,172 shares during the period. Institutional investors and hedge funds 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.