Lois K. Zabrocky, the President and CEO of International Seaways, Inc. (NYSE:INSW), has recently sold a portion of her stock in the company. According to the latest filings, Zabrocky sold 2,000 shares of common stock at a price of $49.4 per share, totaling $98,800.
The transaction took place on August 12, 2024, and was reported in a filing dated the following day. Following the sale, Zabrocky still holds a substantial number of shares, with 157,475 remaining in her possession. It's notable that the shares were sold under a pre-arranged Rule 10b5-1 trading plan, which was adopted by Zabrocky on May 10, 2024. These plans allow insiders to sell shares at predetermined times to avoid accusations of trading on non-public information.
Investors often monitor insider transactions as they can provide insights into the executives' perspectives on the company's future prospects. However, sales under a 10b5-1 trading plan are planned in advance, which means they do not necessarily reflect a change in the insider's view of the company's potential.
International Seaways, headquartered in New York, operates in the water transportation sector, and its shares are publicly traded under the ticker symbol INSW on the New York Stock Exchange.
In other recent news, International Seaways reported strong financial results for the second quarter of 2024. The company posted an adjusted net income of $118 million or $2.37 per diluted share and expanded its revolver capacity to $506 million. A notable highlight was the declared dividend of $1.50 per share, representing 64% of the adjusted net income.
International Seaways has also been active in fleet optimization, selling three aged vessels and acquiring six eco MR vessels. The company's strategy to enhance the balance sheet and return value to shareholders is reflected in these recent developments.
Analysts note a promising future for the company, with expectations of significant free cash flow generation in the third quarter. The company's liquidity position is strong, nearing $700 million. Moreover, International Seaways anticipates a robust tanker market due to growing oil demand and an aging global fleet. Despite potential inflationary pressures on transportation expenses, the company maintains a positive outlook, supported by its strategy of securing long-term charters at favorable rates.
InvestingPro Insights
Amidst the news of Lois K. Zabrocky's stock sale, International Seaways, Inc. (NYSE:INSW) presents a compelling picture for investors looking at the company's financial metrics and market performance. According to InvestingPro data, International Seaways boasts a robust market capitalization of $2.44 billion, underpinned by a remarkably low price-to-earnings (P/E) ratio of 4.64, which further adjusts to 5.12 over the last twelve months as of Q2 2024. This suggests that the company's earnings are strong relative to its share price, which could indicate undervaluation.
Furthermore, the company's dividend yield as of late June 2024 stands at an attractive 11.84%, coupled with a history of raising its dividend for four consecutive years. This level of dividend yield is significant, particularly for income-focused investors. Additionally, International Seaways' commitment to rewarding shareholders is also reflected in its high shareholder yield, a key InvestingPro Tip that combines dividends and share repurchases to show the total payout to shareholders.
Despite a recent decline in revenue growth, with a -11.27% change over the last twelve months as of Q2 2024, the company's gross profit margin remains high at 68.94%, indicating a strong ability to convert revenue into profit. Moreover, with liquid assets surpassing short-term obligations and a moderate level of debt, International Seaways operates on a solid financial foundation. This is pertinent for investors considering the stability and risk associated with the company.
For those interested in further insights, there are additional InvestingPro Tips available at: https://www.investing.com/pro/INSW, which can provide a deeper analysis into International Seaways' performance and outlook.
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