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International Seaways executive sells $51k in company stock

Published 02/10/2024, 08:08 am
INSW
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Senior Vice President of International Seaways, Inc. (NYSE:INSW), William F. Nugent, has sold a portion of his stock in the company, according to the latest disclosures. The transaction, which took place on September 30, involved the sale of 1,000 shares at prices ranging from $51.07 to $51.54, yielding a total of approximately $51,239.

The sale price reported represents a weighted average, as the shares were sold in multiple trades within the stated price range. Following this transaction, Nugent retains ownership of 52,803 shares in the company. It should be noted that the sales were conducted under a pre-established trading plan, known as a Rule 10b5-1 plan, which Nugent had set up on May 10, 2024.

Investors often monitor insider transactions as they provide insights into how executives and directors view the stock's value. The selling of shares by an insider can be interpreted in various ways, but it is essential to consider the context, including the executive's remaining stake in the company and any pre-planned trading arrangements.

International Seaways, Inc., headquartered in New York, operates in the water transportation industry, providing energy transportation services for crude oil and petroleum products. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol INSW.

In other recent news, International Seaways has showcased strong Q2 results for 2024, which included an adjusted net income of $118 million or $2.37 per diluted share. The company has increased its financial flexibility by expanding its revolver capacity to $506 million and reducing its daily breakeven rate. These developments are part of the company's balanced approach to capital allocation, as evidenced by a declared dividend of $1.50 per share, representing 64% of the adjusted net income.

Moreover, International Seaways sold three older vessels and acquired six eco MR vessels, contributing to the company's ongoing fleet optimization. The company also anticipates a robust tanker market driven by increasing oil demand and an aging global fleet.

In addition, International Seaways expects significant free cash flow generation in Q3 and maintains a strong liquidity position nearing $700 million. The company has no plans to diversify into different market segments, focusing instead on crude and product markets. These recent developments indicate International Seaways' strategic moves to enhance its balance sheet and return value to shareholders.

InvestingPro Insights

To provide additional context to William F. Nugent's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for International Seaways, Inc. (NYSE:INSW).

According to InvestingPro data, INSW currently has a market capitalization of $2.56 billion and trades at a P/E ratio of 4.89, suggesting the stock may be undervalued relative to its earnings. This low P/E ratio aligns with an InvestingPro Tip indicating that the company has a high shareholder yield.

Notably, INSW boasts a significant dividend yield of 11.29%, with a dividend growth rate of 19.75% over the last twelve months. An InvestingPro Tip highlights that the company has raised its dividend for 4 consecutive years, demonstrating a commitment to returning value to shareholders. This consistent dividend growth may provide some context for why an executive like Nugent might engage in a pre-planned stock sale while still maintaining a substantial position in the company.

The company's financial health appears robust, with an operating income margin of 50.51% for the last twelve months as of Q2 2024. This strong profitability is reflected in another InvestingPro Tip, which notes that INSW has been profitable over the last twelve months.

For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for INSW, providing a deeper understanding of the company's financial position and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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