Torm (NASDAQ:TRMD) Sets New 52-Week High – Still a Buy?

Torm Plc (NASDAQ:TRMD)’s share price reached a new 52-week high during mid-day trading on Monday. The stock traded as high as $41.64 and last traded at $41.2310, with a volume of 210,639 shares. The stock had previously closed at $39.94.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the stock. Weiss Ratings upgraded shares of Torm from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday. Evercore reaffirmed an “outperform” rating and set a $38.00 price target on shares of Torm in a report on Wednesday, August 26th. Finally, Wall Street Zen upgraded shares of Torm from a “buy” rating to a “strong-buy” rating in a research report on Saturday, September 19th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, Torm has a consensus rating of “Buy” and an average target price of $38.00.

Torm Price Performance

The company has a market cap of $4.19 billion, a P/E ratio of 6.74 and a beta of 0.07. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.97 and a current ratio of 2.27. The firm’s fifty day moving average is $34.33 and its two-hundred day moving average is $31.39.

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

Torm Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th were paid a $2.40 dividend. This represents a $9.60 dividend on an annualized basis and a dividend yield of 23.4%. This is a positive change from Torm’s previous quarterly dividend of $0.70. The ex-dividend date of this dividend was Thursday, September 10th. Torm’s dividend payout ratio is currently 115.49%.

Insider Activity

In related news, CFO Kim Balle sold 7,533 shares of the stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $36.35, for a total transaction of $273,824.55. Following the completion of the sale, the chief financial officer owned 510 shares in the company, valued at approximately $18,538.50. This trade represents a 93.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders sold a total of 42,533 shares of company stock worth $1,643,225 in the last three months. Company insiders own 0.37% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Arrowstreet Capital Limited Partnership boosted its position in shares of Torm by 0.7% during the first quarter. Arrowstreet Capital Limited Partnership now owns 3,064,258 shares of the company’s stock worth $86,032,000 after acquiring an additional 21,280 shares during the last quarter. Sei Investments Co. purchased a new position in Torm during the first quarter valued at $7,705,000. Fearnley Asset Management AS bought a new stake in Torm in the 4th quarter valued at $4,048,000. Bank of America Corp DE increased its holdings in Torm by 209.8% in the 1st quarter. Bank of America Corp DE now owns 130,421 shares of the company’s stock valued at $3,639,000 after acquiring an additional 88,318 shares during the last quarter. Finally, Swiss National Bank increased its holdings in Torm by 5.6% in the 1st quarter. Swiss National Bank now owns 122,854 shares of the company’s stock valued at $3,482,000 after acquiring an additional 6,483 shares during the last quarter. 73.89% of the stock is owned by hedge funds and other institutional investors.

Torm Company Profile

TORM plc is a Denmark-based international shipping company that owns and operates product tankers. The company transports refined petroleum products, including gasoline, diesel, jet fuel and naphtha, as well as other clean petroleum and chemical products for customers worldwide.

TORM manages a fleet of tankers across several size classes, including medium-range and larger vessels. Its activities cover commercial and technical vessel management, chartering, and the transportation of liquid cargoes between major production, refining and consumption markets.

Founded in 1889, TORM has its roots in Denmark and has developed into a global product tanker operator serving routes across the Atlantic, Pacific, Middle East and Asia-Pacific regions.