Genco Shipping & Trading (NYSE:GNK) Trading Down 6.5% – Here’s Why

Genco Shipping & Trading Limited (NYSE:GNK) was down 6.5% during trading on Wednesday . The stock traded as low as $20.82 and last traded at $20.7310. Approximately 59,412 shares changed hands during mid-day trading, a decline of 87% from the average daily volume of 450,145 shares. The stock had previously closed at $22.17.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the company. Weiss Ratings reiterated a “hold (c-)” rating on shares of Genco Shipping & Trading in a report on Monday, December 29th. Zacks Research raised shares of Genco Shipping & Trading from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, February 17th. Alliance Global Partners lowered Genco Shipping & Trading from a “buy” rating to a “neutral” rating in a research report on Thursday, February 19th. Finally, Wall Street Zen cut Genco Shipping & Trading from a “hold” rating to a “sell” rating in a research report on Sunday, December 14th. Three research analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, Genco Shipping & Trading presently has an average rating of “Buy” and an average price target of $21.00.

Genco Shipping & Trading Stock Down 7.3%

The firm has a 50-day moving average of $21.11 and a 200 day moving average of $18.88. The stock has a market capitalization of $890.10 million, a price-to-earnings ratio of -186.26, a price-to-earnings-growth ratio of 4.94 and a beta of 1.14. The company has a current ratio of 2.39, a quick ratio of 1.84 and a debt-to-equity ratio of 0.21.

Genco Shipping & Trading (NYSE:GNK) last issued its quarterly earnings results on Tuesday, February 17th. The shipping company reported $0.39 EPS for the quarter, topping the consensus estimate of $0.35 by $0.04. The business had revenue of $109.92 million for the quarter, compared to analysts’ expectations of $78.52 million. Genco Shipping & Trading had a negative net margin of 1.28% and a negative return on equity of 0.12%. The company’s quarterly revenue was up 10.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.29 earnings per share. On average, sell-side analysts anticipate that Genco Shipping & Trading Limited will post 0.48 earnings per share for the current year.

Genco Shipping & Trading Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 18th. Stockholders of record on Wednesday, March 11th will be issued a $0.50 dividend. This is a boost from Genco Shipping & Trading’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend is Wednesday, March 11th. This represents a $2.00 annualized dividend and a dividend yield of 9.7%. Genco Shipping & Trading’s dividend payout ratio (DPR) is presently -1,818.18%.

Insider Activity

In other news, insider Jesper Christensen sold 18,450 shares of Genco Shipping & Trading stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $23.66, for a total transaction of $436,527.00. Following the sale, the insider owned 98,299 shares of the company’s stock, valued at approximately $2,325,754.34. The trade was a 15.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Joseph Adamo sold 6,340 shares of the stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $23.67, for a total value of $150,067.80. Following the completion of the transaction, the chief accounting officer directly owned 38,519 shares of the company’s stock, valued at $911,744.73. This trade represents a 14.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 55,824 shares of company stock valued at $1,313,949. 2.37% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Royal Bank of Canada increased its holdings in shares of Genco Shipping & Trading by 68.2% during the first quarter. Royal Bank of Canada now owns 54,287 shares of the shipping company’s stock valued at $725,000 after purchasing an additional 22,007 shares during the period. Amundi lifted its holdings in Genco Shipping & Trading by 29.0% in the first quarter. Amundi now owns 8,000 shares of the shipping company’s stock worth $101,000 after purchasing an additional 1,800 shares during the period. AQR Capital Management LLC grew its position in Genco Shipping & Trading by 49.3% in the 1st quarter. AQR Capital Management LLC now owns 296,188 shares of the shipping company’s stock valued at $3,957,000 after buying an additional 97,766 shares in the last quarter. Dynamic Technology Lab Private Ltd increased its stake in Genco Shipping & Trading by 59.5% during the 1st quarter. Dynamic Technology Lab Private Ltd now owns 17,848 shares of the shipping company’s stock valued at $238,000 after buying an additional 6,660 shares during the period. Finally, Envestnet Asset Management Inc. acquired a new position in Genco Shipping & Trading during the 2nd quarter valued at about $255,000. Institutional investors and hedge funds own 58.62% of the company’s stock.

About Genco Shipping & Trading

Genco Shipping & Trading Limited is a leading global owner and operator of drybulk vessels, providing seaborne transportation services for major commodities such as iron ore, coal, grain and fertilizers. The company’s fleet comprises Capesize, Panamax and Supramax vessels, which are chartered to a broad base of international charterers under both spot and period contracts. Genco’s focus on modern, fuel-efficient tonnage supports reliable cargo delivery across a variety of trade routes and market conditions.

In addition to vessel ownership and operation, Genco offers ship management, maintenance and technical support services designed to maximize fleet performance and safety.