Teekay Tankers: Updates and Analyst Recommendations in September
In September 2017, Teekay Tankers (TNK) announced a share repurchase program of up to $45 million of the company’s Class A common shares. Teekay Tankers would repurchase the shares in the open market at times and prices considered appropriate by the company. In this weak tanker market, Teekay Tankers’ main priority is strengthening its balance sheet by reducing financial leverage and increasing liquidity.
TNK’s president and CEO, Kevin Mackay, stated, “This program is being put in place as another lever to create shareholder value, allowing us to opportunistically take advantage of dislocations in the capital markets when we have excess capital.”
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On September 11, 2017, TNK’s stock price dropped to $1.37—a 52-week low. The price on September 22, 2017, was 19.7% higher than its 52-week low and 42.4% lower than its 52-week high.
Ten analysts gave recommendations for Teekay Tankers, and 30% of the analysts are bullish on the stock. None of the analysts gave a “strong buy” to the stock, but three analysts recommended a “buy.”
Five analysts gave a “hold” rating on the stock. Two analysts recommended a “sell,” and none of the analysts recommended a “strong sell” for TNK. None of the analysts have revised their ratings on TNK since the start of the year.
The consensus 12-month target price for Teekay Tankers is $2.17. Compared to the price of $1.63 on September 21, the target price implies a potential upside of 33.1%.