Torm (NASDAQ:TRMD) Shares Gap Down – Should You Sell?

Torm Plc (NASDAQ:TRMD) gapped down before the market opened 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 traded.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Wall Street Zen cut shares of Torm from a “strong-buy” rating to a “buy” rating in a report on Sunday, September 6th. Weiss Ratings upgraded Torm from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday. Finally, Evercore reissued an “outperform” rating and set a $38.00 price target on shares of Torm in a research report on Wednesday, August 26th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Buy” and an average price target of $38.00.

Torm Stock Down 3.5%

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 firm has a market cap of $3.48 billion, a price-to-earnings ratio of 5.61 and a beta of 0.12. The firm’s 50 day simple moving average is $30.90 and its two-hundred day simple moving average is $29.91.

Torm (NASDAQ:TRMD) last posted its quarterly earnings data 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 return on equity of 27.24% and a net margin of 35.51%.The company had revenue of $662.80 million for the quarter, compared to the consensus estimate of $499.01 million.

Torm Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th will be paid a $2.40 dividend. This represents a $9.60 dividend on an annualized basis and a dividend yield of 28.2%. The ex-dividend date is Thursday, September 10th. This is a positive change from Torm’s previous quarterly dividend of $0.70. Torm’s dividend payout ratio is currently 115.32%.

Institutional Trading of Torm

A number of hedge funds have recently made changes to their positions in TRMD. Norges Bank acquired a new stake in Torm in the fourth quarter valued at $24,830,000. Sei Investments Co. bought a new position in Torm during the 1st quarter worth $7,705,000. Marnell Management LLC acquired a new position in Torm during the 4th quarter worth about $4,815,000. Fearnley Asset Management AS acquired a new position in Torm during the 4th quarter worth about $4,048,000. Finally, Folketrygdfondet lifted its holdings in Torm by 174.0% during the 4th quarter. Folketrygdfondet now owns 238,662 shares of the company’s stock worth $4,673,000 after buying an additional 151,563 shares during the period. 73.89% of the stock is owned by institutional investors and hedge funds.

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.