Teekay Corporation (NYSE:TK) shares experienced a bloodbath yesterday after the company announced that they would be cutting their dividend 90% from 55 cents per quarter to just 5.5 cents per quarter. Shares plunged 58.4% and traded as low as $6.65 at one point yesterday afternoon. The drop, which surprised many traders, since it was due to merely a dividend reduction, seems to have stopped.
In pre-market trading today shares are up $0.46 or 6.25% as value investors begin looking at the company after a major haircut. Clearly the stock seems to be oversold after yesterday’s rout. It will be interesting to watch and see how shares of Teekay Corporation (NYSE:TK) perform in the first hour of trading this morning. The stock decreased 58.4% during the last trading session, hitting $7.24. TK shares have declined 84.72% since May 15, 2015 and are currently downtrending. It has underperformed the S&P500 by 82.46%.
From a total of 5 analysts covering Teekay Corporation (NYSE:TK) stock, 4 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 80% of the ratings are positive. The highest target price is $57 while the lowest target price is $38. The mean of all analyst targets is $47.40 which is 554.70% above today’s ($7.24) stock price. Teekay Corporation was the topic of 5 analyst reports since August 7, 2015 according to the firm StockzIntelligence Inc.
Teekay Corporation is a provider of crude gas and oil marine transportation services. The company has a market cap of $1.27 billion. The Firm also offers offshore oil production, storage and offloading services, primarily under long-term, fixed-rate contracts. It has 17.84 P/E ratio. The Firm is engaged in the liquefied natural gas (LNG) and liquefied petroleum gas (LPG) shipping sectors through its subsidiary Teekay LNG Partners L.P. (Teekay LNG).