Nordic American Tankers Limited (NAT): A Great Stock For Handling Current Market Conditions?

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SSgA Funds Management, Inc. recently announced the acquisition of new stake in Nordic American Tankers Limited (NYSE:NAT). The institutional investor has increased its shareholding in the Industrials company by 8.11% to 2.96 million shares with purchase of 0.22 million shares. This fresh investment now brings its stake to 2.01% valued currently at $13.45 million. In addition, Greylin Investment Management, In.. raised its holdings by 0.59 million to 2.85 million shares. And Dimensional Fund Advisors LP has lifted its position by 22.70% or 0.38 million shares – to 2.07 million shares.

With over 2.81 million Nordic American Tankers Limited (NAT) shares trading Tuesday and a closing price of $4.21 on the day, the dollar volume was approximately $11.83 million. The shares have shown a negative weekly performance of -6.65% and its price on 09/01/20 lost nearly -3.44%. Currently, there are 147.23M common shares owned by the public and among those 46.81M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 7 analysts who have offered their price forecasts for NAT have a consensus price objective of $5.21. The analysts have set the share’s price value over the next 12 months at a high of $8.00 and a low of $1.40 should the stock experience a downside. Incidentally, analysts’ outlook for the Nordic American Tankers Limited stock is 2.30 for the next 12 months. The average price target is 32.96% above its last price level and an upside to the estimated low will see the stock lose -200.71% over that period. But an upside of 47.38% will see the stock hit the forecast high price target while mean target price for the stock is $6.00.

The top 3 mutual fund holders in Nordic American Tankers Limited are iShares Russell 2000 ETF, iShares Russell 2000 Value ETF, and Fidelity Small Cap Index Fund. iShares Russell 2000 ETF owns 3.0 million shares of the company’s stock, all valued at over $13.66 million. The company sold -0.14 million shares recently to bring their total holdings to about 2.04% of the shares outstanding. Fidelity Small Cap Index Fund bought 0.1 million shares to bring its total holdings to over 0.83 million shares at a value of $3.8 million. Fidelity Small Cap Index Fund now owns shares totaling to 0.57% of the shares outstanding.

Shares of Nordic American Tankers Limited (NYSE: NAT) opened at $4.35, down -$0.01 from a prior closing price of $4.36. However, the script later closed the day at $4.21, down -3.44%. The company’s stock has a 5-day price change of -6.65% and -4.75% over the past three months. NAT shares are trading -14.43% year to date (YTD), with the 12-month market performance up to 146.20% higher. It has a 12-month low price of $1.66 and touched a high of $9.00 over the same period. Currently, 2.81 million shares have been traded, compared to an average intraday trading volume of 4.20 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -4.68%, -3.21%, and 0.24% respectively.

Institutional ownership of Nordic American Tankers Limited (NYSE: NAT) shares accounts for 30.00% of the company’s 147.23M shares outstanding. Mutual fund holders own 11.36%, while other institutional holders and individual stakeholders account for 18.34% and — respectively.

It has a market capitalization of $591.25M and a beta (3y monthly) value of 0.40. The stock’s trailing 12-month PE ratio is 27.16, while the earnings-per-share (ttm) stands at $0.16. The company has a PEG of 5.43 and a Quick Ratio of 1.70 with the debt-to-equity ratio at 0.65. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.41% over the week and 4.24% over the month.

Analysts forecast that Nordic American Tankers Limited (NAT) will achieve an EPS of -$0.04 for the current quarter, $0.06 for the next quarter and $0.47 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.1 while analysts give the company a high EPS estimate of -$0.01. Comparatively, EPS for the current quarter was -$0.1 a year ago. Earnings per share for the fiscal year are expected to increase by 89.20%, and -21.87% over the next financial year. EPS should shrink at an annualized rate of 5.00% over the next five years, compared to 14.00% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 7 brokerage firm advisors rate Nordic American Tankers Limited (NAT) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 4 Wall Street analysts polled rate the stock as a buy, while 1 of the 7 advise that investors “hold,” and 2 rated it as a “Sell.”

Looking at the support for the NAT, a number of firms have released research notes about the stock. Evercore ISI stated their Underperform rating for the stock in a research note on May 04, 2020, with the firm’s price target at. Evercore ISI coverage for the Nordic American Tankers Limited (NAT) stock in a research note released on October 18, 2019 offered a In-line rating with a price target of $4. BTIG Research was of a view on October 08, 2019 that the stock is Buy, while B. Riley FBR gave the stock Buy rating on November 09, 2018, issuing a price target of $4.25. Jefferies on their part issued Hold rating on December 14, 2017.

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