Torm (NASDAQ:TRMD) Shares Gap Down – Here’s Why

Torm Plc (NASDAQ:TRMD)’s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $35.34, but opened at $32.59. Torm shares last traded at $34.6110, with a volume of 3,586,330 shares trading hands.

Wall Street Analyst Weigh In

Several research firms have weighed in on TRMD. Weiss Ratings upgraded Torm from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, September 11th. Evercore reiterated an “outperform” rating and issued a $38.00 price target on shares of Torm in a research note on Wednesday, August 26th. Finally, Wall Street Zen cut Torm from a “strong-buy” rating to a “buy” rating in a report on Sunday, September 6th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Buy” and a consensus target price of $38.00.

Torm Trading Up 4.8%

The company has a market capitalization of $3.73 billion, a price-to-earnings ratio of 6.03 and a beta of 0.12. The company has a current ratio of 2.27, a quick ratio of 1.97 and a debt-to-equity ratio of 0.33. The business’s 50 day moving average price is $31.18 and its two-hundred day moving average price is $30.01.

Torm (NASDAQ:TRMD) last released its quarterly earnings data on Wednesday, August 26th. The company reported $3.25 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.31 by ($0.06). The company had revenue of $662.80 million for the quarter, compared to analyst estimates of $499.01 million. Torm had a return on equity of 27.24% and a net margin of 35.51%.

Torm Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th will be issued a dividend of $2.40 per share. This represents a $9.60 annualized dividend and a dividend yield of 26.2%. This is a boost from Torm’s previous quarterly dividend of $0.70. The ex-dividend date is Thursday, September 10th. Torm’s dividend payout ratio (DPR) is currently 115.49%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Arrowstreet Capital Limited Partnership increased its holdings in Torm by 0.7% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,064,258 shares of the company’s stock worth $86,032,000 after purchasing an additional 21,280 shares in the last quarter. Norges Bank acquired a new stake in shares of Torm during the fourth quarter valued at about $24,830,000. Sei Investments Co. bought a new stake in shares of Torm during the first quarter worth about $7,705,000. Marnell Management LLC bought a new stake in shares of Torm during the fourth quarter worth about $4,815,000. Finally, Folketrygdfondet increased its stake in shares of Torm by 174.0% in the fourth quarter. Folketrygdfondet now owns 238,662 shares of the company’s stock valued at $4,673,000 after buying an additional 151,563 shares during the period. 73.89% of the stock is currently owned by institutional investors.

About Torm

TORM plc is an international product tanker company that transports refined oil products and other energy-related cargoes by sea. Its vessels carry products such as gasoline, jet fuel, diesel and other clean petroleum products between production, storage and consumption markets.

The company operates a fleet of product tankers across several size categories, including long-range, medium-range and Handysize vessels. TORM provides seaborne transportation services to oil companies, trading houses and other commercial customers, with operations serving major shipping routes and energy markets worldwide.

TORM traces its history to 1889 and is headquartered in Copenhagen, Denmark.