Torm (NASDAQ:TRMD) Trading 5.1% Higher - Time to Buy?

Key Points

• Torm shares rose by 5.1% on Monday, trading as high as $19.55, despite a significant decline in trading volume.
• Analysts have given Torm a consensus rating of "Moderate Buy", with a target price averaging at $27.50 following upgrades from several firms.
• The company reported a net income miss in its latest quarterly earnings and announced a quarterly dividend of $0.40, indicating an annualized dividend yield of 8.13%.

Torm Plc (NASDAQ:TRMD - Get Free Report) traded up 5.1% during trading on Monday . The stock traded as high as $19.45 and last traded at $19.55. 431,883 shares were traded during trading, a decline of 54% from the average session volume of 943,434 shares. The stock had previously closed at $18.60.

Analysts Set New Price Targets

Several analysts have commented on the stock. Fearnley Fonds upgraded shares of Torm from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 6th. Evercore ISI decreased their price objective on shares of Torm from $25.00 to $23.00 and set an "outperform" rating for the company in a research note on Tuesday, April 22nd. Finally, Pareto Securities upgraded shares of Torm from a "hold" rating to a "buy" rating in a research note on Wednesday, May 14th. One investment 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 company. According to MarketBeat, Torm presently has a consensus rating of "Moderate Buy" and an average target price of $27.50.

Torm Price Performance

The company has a market capitalization of $1.85 billion, a price-to-earnings ratio of 4.15 and a beta of 0.14. The stock's 50-day simple moving average is $17.56 and its two-hundred day simple moving average is $17.85. The company has a quick ratio of 2.28, a current ratio of 2.55 and a debt-to-equity ratio of 0.48.

Torm (NASDAQ:TRMD - Get Free Report) last announced its quarterly earnings data on Thursday, May 8th. The company reported $0.62 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.64 by ($0.02). Torm had a net margin of 32.20% and a return on equity of 22.40%. The firm had revenue of $214.00 million during the quarter, compared to analysts' expectations of $244.25 million. Equities research analysts predict that Torm Plc will post 6.27 earnings per share for the current year.

Torm Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 4th. Investors of record on Thursday, May 22nd were issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 8.13%. The ex-dividend date of this dividend was Thursday, May 22nd. Torm's dividend payout ratio is currently 24.68%.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Tower Research Capital LLC TRC raised its holdings in Torm by 8.6% in the fourth quarter. Tower Research Capital LLC TRC now owns 8,991 shares of the company's stock valued at $175,000 after acquiring an additional 711 shares in the last quarter. Geode Capital Management LLC increased its stake in Torm by 1.0% in the fourth quarter. Geode Capital Management LLC now owns 82,466 shares of the company's stock valued at $1,604,000 after purchasing an additional 840 shares during the last quarter. Apollon Wealth Management LLC increased its stake in Torm by 9.1% in the first quarter. Apollon Wealth Management LLC now owns 11,691 shares of the company's stock valued at $193,000 after purchasing an additional 972 shares during the last quarter. NewEdge Advisors LLC increased its stake in Torm by 16.4% in the fourth quarter. NewEdge Advisors LLC now owns 11,964 shares of the company's stock valued at $233,000 after purchasing an additional 1,685 shares during the last quarter. Finally, Midwest Professional Planners LTD. increased its stake in Torm by 2.7% in the first quarter. Midwest Professional Planners LTD. now owns 68,441 shares of the company's stock valued at $1,128,000 after purchasing an additional 1,814 shares during the last quarter. Institutional investors and hedge funds 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.

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