Torm (NASDAQ:TRMD) Trading 7.3% Higher – Time to Buy?

Shares of Torm Plc (NASDAQ:TRMD) were up 7.3% during mid-day trading on Thursday . The company traded as high as $28.06 and last traded at $28.1790. Approximately 202,769 shares changed hands during mid-day trading, a decline of 76% from the average session volume of 846,494 shares. The stock had previously closed at $26.25.

Wall Street Analyst Weigh In

A number of research firms have commented on TRMD. Evercore set a $35.00 target price on shares of Torm in a report on Tuesday, April 21st. Pareto Securities downgraded Torm from a “hold” rating to a “hold” rating in a research note on Wednesday, May 13th. Wall Street Zen lowered Torm from a “strong-buy” rating to a “buy” rating in a research report on Saturday, June 13th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Torm in a research note on Friday, April 17th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $35.00.

Torm Stock Up 6.3%

The business’s 50-day moving average is $30.26 and its two-hundred day moving average is $26.94. The firm has a market capitalization of $2.85 billion, a price-to-earnings ratio of 8.19 and a beta of 0.10. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.20 and a current ratio of 1.40.

Torm (NASDAQ:TRMD) last issued its quarterly earnings data on Wednesday, May 13th. The company reported $1.18 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.33 by ($0.15). Torm had a net margin of 24.45% and a return on equity of 15.81%. The firm had revenue of $402.00 million for the quarter, compared to analyst estimates of $297.43 million.

Torm Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 11th. Stockholders of record on Thursday, May 28th were issued a $0.70 dividend. The ex-dividend date of this dividend was Thursday, May 28th. This represents a $2.80 annualized dividend and a dividend yield of 10.0%. Torm’s payout ratio is 60.00%.

Insider Activity at Torm

In related news, CEO Jacob Balslev Meldgaard sold 170,133 shares of the company’s stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $32.30, for a total value of $5,495,295.90. Following the completion of the sale, the chief executive officer owned 348,411 shares in the company, valued at $11,253,675.30. This represents a 32.81% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.37% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Quarry LP acquired a new position in Torm in the third quarter valued at about $35,000. Optiver Holding B.V. acquired a new stake in shares of Torm during the first quarter worth about $67,000. Tower Research Capital LLC TRC bought a new position in shares of Torm during the 2nd quarter valued at about $46,000. Wexford Capital LP bought a new position in shares of Torm during the 3rd quarter valued at about $120,000. Finally, Hilton Head Capital Partners LLC acquired a new position in shares of Torm in the 4th quarter valued at approximately $121,000. 73.89% of the stock is currently owned by institutional investors.

About Torm

Torm A/S (NASDAQ: TRMD) is an international shipping company specializing in the transportation of refined petroleum products. The firm owns and operates a modern fleet of product tankers, including both Handysize and MR vessels, which are designed to carry a broad range of clean petroleum cargoes such as gasoline, jet fuel and diesel. Torm’s core business revolves around voyage and time-charter contracts with major oil companies, trading houses and other energy sector clients around the world.

The company’s fleet is deployed on global trade routes, with particular focus on major refining and consumption regions in Europe, North America and Asia.