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International Seaways (INSW) Surges 5.6%: Is This an Indication of Further Gains?

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International Seaways (INSW - Free Report) shares rallied 5.6% in the last trading session to close at $19.38. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2% gain over the past four weeks.

The upside was owing to the merger agreement signed between International Seaways and Diamond S Shipping. The merger is expected to be culminated by Sep 30, 2021, subject to shareholder and regulatory clearances.

Following the completion of this stock-for-stock transaction, shareholders of International Seaways and Diamond S Shipping will own 55.75% and 44.25% of the combined entity, respectively. Immediately prior to the closing of the transaction, the current stakeholders of International Seaways will also receive a special dividend of $1.10 per share.  The consolidated entity will become the second largest US-listed tanker company in terms of vessel count post the deal conclusion.


Price and Consensus

Price Consensus Chart for INSW

This company is expected to post quarterly loss of $0.54 per share in its upcoming report, which represents a year-over-year change of -136.2%. Revenues are expected to be $48.72 million, down 61.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For International Seaways, the consensus EPS estimate for the quarter has been revised 20.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on INSW going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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