Torm Plc (NASDAQ: TRMD) has seen a decline in its stock price by -2.56 in relation to its previous close of 22.67. However, the company has experienced a 3.81% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2025-01-15 that TORM’s recent stock weakness, in my view, is a buying opportunity, as the key factors behind its post-2018 rebound should persist for the next 2-3 years. Strong Q3 performance with $263M TCE earnings, $191M EBITDA, and 20.3% ROIC, showcasing resilience in a volatile market. Structural industry dynamics, like an aging global fleet and limited newbuilds, support sustained high TCE rates and earnings growth.
Is It Worth Investing in Torm Plc (NASDAQ: TRMD) Right Now?
Torm Plc (NASDAQ: TRMD) has a price-to-earnings ratio of 2.85x that is above its average ratio. Additionally, the 36-month beta value for TRMD is 0.11. There are mixed opinions on the stock, with 2 analysts rating it as a “buy,” 0 rating it as “overweight,” 0 rating it as “hold,” and 0 rating it as “sell.”
The public float for TRMD is 52.94M and currently, short sellers hold a 8.10% ratio of that float. The average trading volume of TRMD on January 15, 2025 was 1.30M shares.
TRMD’s Market Performance
The stock of Torm Plc (TRMD) has seen a 3.81% increase in the past week, with a 17.81% rise in the past month, and a -29.40% fall in the past quarter. The volatility ratio for the week is 3.16%, and the volatility levels for the past 30 days are at 3.06% for TRMD. The simple moving average for the last 20 days is 10.29% for TRMD stock, with a simple moving average of -30.51% for the last 200 days.
Analysts’ Opinion of TRMD
Many brokerage firms have already submitted their reports for TRMD stocks, with H.C. Wainwright repeating the rating for TRMD by listing it as a “Buy.” The predicted price for TRMD in the upcoming period, according to H.C. Wainwright is $14 based on the research report published on April 12, 2022 of the previous year 2022.
TRMD Trading at 3.73% from the 50-Day Moving Average
After a stumble in the market that brought TRMD to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -45.42% of loss for the given period.
Volatility was left at 3.06%, however, over the last 30 days, the volatility rate increased by 3.16%, as shares surge +14.24% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -14.54% lower at present.
During the last 5 trading sessions, TRMD rose by +4.42%, which changed the moving average for the period of 200-days by -36.42% in comparison to the 20-day moving average, which settled at $20.03. In addition, Torm Plc saw 13.57% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at TRMD starting from OCM Njord Holdings S.a r.l., who proposed sale 3,528,866 shares at the price of $34.19 back on Sep 30 ’24. After this action, OCM Njord Holdings S.a r.l. now owns shares of Torm Plc, valued at $120,651,929 using the latest closing price.
Stock Fundamentals for TRMD
Current profitability levels for the company are sitting at:
- 0.47 for the present operating margin
- 0.62 for the gross margin
The net margin for Torm Plc stands at 0.44. The total capital return value is set at 0.24. Equity return is now at value 39.87, with 23.12 for asset returns.
Based on Torm Plc (TRMD), the company’s capital structure generated 0.37 points at debt to capital in total, while cash flow to debt ratio is standing at 0.74. The debt to equity ratio resting at 0.59. The interest coverage ratio of the stock is 10.99.
Currently, EBITDA for the company is 862.17 million with net debt to EBITDA at 0.86. When we switch over and look at the enterprise to sales, we see a ratio of 1.81. The receivables turnover for the company is 7.46for trailing twelve months and the total asset turnover is 0.48. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.47.
Conclusion
In conclusion, Torm Plc (TRMD) has seen mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
