Genco Shipping & Trading Limited (NYSE:GNK) shares traded higher over the last trading session, gaining 3.04% on 06/10/21. The shares fell to a low of $17.51 before closing at $17.94. Intraday shares traded counted 1.12 million, which was -15.0% lower than its 30-day average trading volume of 972.09K. GNK’s previous close was $17.41 while the outstanding shares total 41.97M. The firm has a beta of 1.04. The stock’s Relative Strength Index (RSI) is 67.57, with weekly volatility at 5.19% and ATR at 0.90. The GNK stock’s 52-week price range has touched low of $5.80 and a $17.81 high.
Investors have identified the Marine Shipping company Genco Shipping & Trading Limited as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $758.14 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Genco Shipping & Trading Limited (GNK) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For GNK, the company has in raw cash 163.71 million on their books with 65.28 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 227.88 million total, with 98.86 million as their total liabilities.
GNK were able to record 12.11 million as free cash flow during the 08/11/2021 quarter of the year, this saw their quarterly net cash flow reduce by -15.65 million. In cash movements, the company had a total of 13.49 million as operating cash flow.
Potential earnings growth for Genco Shipping & Trading Limited (GNK)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/11/2021 quarter of the year, Genco Shipping & Trading Limited recorded a total of 87.59 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -12.27% coming in sequential stages and their sales for the 08/11/2021 quarter reducing by -9.02%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 59.55 million trying to sell their products during the last quarter, with the result yielding a gross income of 28.04 million. This allows shareholders to hold on to 41.97M with the recently reported earning now reading 0.05 cents per share. This is a figure that compared to analyst’s prediction for their 08/11/2021 (0.06 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.39 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on GNK sounds very interesting.
Is the stock of GNK attractive?
In related news, 10% Owner, Centerbridge Credit Partners, sold 250,000 shares of the company’s stock in a transaction that recorded on May 24. The sale was performed at an average price of 16.95, for a total value of 4,237,500. As the sale deal closes, the 10% Owner, CCP II Cayman GP Ltd. now sold 250,000 shares of the company’s stock, valued at 4,237,500. Also, 10% Owner, Centerbridge Credit Partners, sold 115,000 shares of the company’s stock in a deal that was recorded on May 21. The shares were price at an average price of 16.85 per share, with a total market value of 1,938,097. Following this completion of acquisition, the 10% Owner, CCP II Cayman GP Ltd. now holds 115,000 shares of the company’s stock, valued at 1,938,097. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.00%.
7 out of 7 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on Genco Shipping & Trading Limited. 0 analysts has assigned a Sell rating on the GNK stock. The 12-month mean consensus price target for the company’s shares has been set at $19.94.