Torm (NASDAQ:TRMD) Trading Down 4.9% - What's Next?

Key Points

• Torm Plc's stock experienced a decline of 4.9%, trading as low as $18.36, with a significant decrease in trading volume down by 74% from its average.
• Analysts have mixed sentiments on Torm, with upgrades from multiple firms, while one analyst issued a sell rating, resulting in an average rating of "Moderate Buy" and a consensus price target of $27.50.
• In its recent earnings report, Torm missed EPS expectations of $0.64, posting $0.62, with $214 million in revenue compared to the $244.25 million consensus estimate.

Torm Plc (NASDAQ:TRMD - Get Free Report) shares were down 4.9% during mid-day trading on Monday . The stock traded as low as $18.36 and last traded at $18.29. Approximately 239,445 shares were traded during trading, a decline of 74% from the average daily volume of 930,364 shares. The stock had previously closed at $19.23.

Analysts Set New Price Targets

A number of brokerages have issued reports on TRMD. Evercore ISI set a $23.00 target price on shares of Torm and gave the stock an "outperform" rating in a report on Thursday. Pareto Securities upgraded shares of Torm from a "hold" rating to a "buy" rating in a report on Wednesday, May 14th. Finally, Fearnley Fonds upgraded shares of Torm from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 6th. One research analyst has rated the stock with a sell rating, three have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $27.50.

Torm Stock Performance

The company has a market cap of $1.88 billion, a price-to-earnings ratio of 6.06 and a beta of 0.12. The firm has a fifty day simple moving average of $18.26 and a 200 day simple moving average of $17.75. The company has a debt-to-equity ratio of 0.48, a current ratio of 2.55 and a quick ratio of 2.28.

Torm (NASDAQ:TRMD - Get Free Report) last announced its quarterly earnings data on Thursday, August 14th. The company reported $0.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.57 by $0.01. Torm had a net margin of 24.90% and a return on equity of 15.77%. The business had revenue of $208.20 million for the quarter, compared to the consensus estimate of $207.58 million. On average, sell-side analysts expect that Torm Plc will post 6.27 earnings per share for the current fiscal year.

Torm Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Shareholders of record on Friday, August 22nd will be given a $0.40 dividend. The ex-dividend date is Friday, August 22nd. This represents a $1.60 dividend on an annualized basis and a yield of 8.0%. Torm's payout ratio is 24.68%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Geode Capital Management LLC lifted its holdings in Torm by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 82,466 shares of the company's stock worth $1,604,000 after buying an additional 840 shares in the last quarter. Legal & General Group Plc lifted its holdings in Torm by 14.4% during the fourth quarter. Legal & General Group Plc now owns 70,598 shares of the company's stock worth $1,357,000 after acquiring an additional 8,881 shares in the last quarter. Renaissance Technologies LLC lifted its stake in Torm by 24.3% in the fourth quarter. Renaissance Technologies LLC now owns 561,889 shares of the company's stock valued at $10,929,000 after buying an additional 109,916 shares in the last quarter. Mariner LLC lifted its position in Torm by 129.3% in the 4th quarter. Mariner LLC now owns 41,382 shares of the company's stock valued at $805,000 after acquiring an additional 23,337 shares in the last quarter. Finally, XTX Topco Ltd lifted its holdings in shares of Torm by 89.7% in the fourth quarter. XTX Topco Ltd now owns 45,651 shares of the company's stock valued at $888,000 after purchasing an additional 21,581 shares in the last quarter. 73.89% of the stock is owned by institutional investors and hedge funds.

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.