Torm (NASDAQ:TRMD) Shares Up 5.1% - Still a 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)'s share price shot up 5.1% during trading on Monday . The stock traded as high as $19.45 and last traded at $19.55. 431,883 shares changed hands during mid-day trading, a decline of 54% from the average session volume of 943,434 shares. The stock had previously closed at $18.60.

Analyst Ratings Changes

Several research firms recently commented on TRMD. Fearnley Fonds upgraded Torm from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 6th. Evercore ISI dropped their target price on Torm from $25.00 to $23.00 and set an "outperform" rating on the stock in a research report on Tuesday, April 22nd. Finally, Pareto Securities upgraded Torm from a "hold" rating to a "buy" rating in a research report on Wednesday, May 14th. One 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's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $27.50.

Torm Trading Down 0.4%

The stock has a market cap of $1.72 billion, a PE ratio of 3.87 and a beta of 0.14. The firm has a 50-day simple moving average of $17.66 and a 200-day simple moving average of $17.82. 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 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 return on equity of 22.40% and a net margin of 32.20%. The company had revenue of $214.00 million for the quarter, compared to analysts' expectations of $244.25 million. Equities analysts forecast that Torm Plc will post 6.27 earnings per share for the current year.

Torm Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 4th. Investors of record on Thursday, May 22nd were given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 8.7%. The ex-dividend date was Thursday, May 22nd. Torm's dividend payout ratio (DPR) is 24.47%.

Institutional Investors Weigh In On Torm

A number of institutional investors and hedge funds have recently made changes to their positions in TRMD. Wealth Preservation Advisors LLC purchased a new stake in shares of Torm in the first quarter worth $69,000. CWM LLC raised its position in shares of Torm by 1,712.3% in the first quarter. CWM LLC now owns 5,292 shares of the company's stock worth $87,000 after buying an additional 5,000 shares in the last quarter. Hibernia Wealth Partners LLC purchased a new stake in shares of Torm in the first quarter worth $167,000. Larson Financial Group LLC increased its stake in Torm by 4,694.8% in the first quarter. Larson Financial Group LLC now owns 10,213 shares of the company's stock valued at $168,000 after acquiring an additional 10,000 shares during the last quarter. Finally, Tower Research Capital LLC TRC increased its stake 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 during the last quarter. 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.