Teekay EPS Tops Estimates as Insider Sales Reach $2.12 Million

By Grace Kim

Teekay (NYSE:TK) reported $0.68 in quarterly earnings per share (EPS) on Wednesday, beating analysts’ $0.09 consensus estimate, the market’s benchmark forecast, by $0.59, according to Zacks.

Teekay also posted a 15.78% net margin (profit as a share of revenue) and a 7.91% return on equity (ROE, profit relative to shareholders’ equity).

Takeaway: The quarter cleared the consensus bar, but the earnings strength was paired with substantial insider selling.

What did the market show?

Teekay shares rose 3.2%, or $0.41, during Wednesday trading and reached $13.32. Traders exchanged 467,815 shares, below the average volume of 567,519 shares.

• Teekay carried a $1.16 billion market capitalization (the total market value of its shares) and a 6.41 price-to-earnings ratio (P/E, market price paid for each dollar of earnings).
• The reported beta was 0.37, a gauge of share-price volatility relative to the broader market.
• The 52-week low was $8.67 and the high was $15.90, leaving Wednesday’s $13.32 within the annual range.
• The 50-day moving average was $14.15 and the 200-day was $12.48; a moving average is a rolling summary of prices over that period.

At $13.32, the shares sat below the 50-day moving average but above the 200-day average.

Takeaway: The session delivered a 3.2% gain, but lower-than-average volume left the price inside its 52-week range.

How much did insiders sell?

• On Wednesday, Aug. 19, CFO (chief financial officer) Brody Speers sold 2,350 shares at an average price of $13.10, a transaction worth $30,785. After the sale, he directly owned 1,014 shares valued at $13,283.40, a 69.86% reduction in his ownership. A Securities and Exchange Commission (SEC) filing disclosed the trade.
• CEO (chief executive officer) Kenneth Hvid sold 132,884 shares on Friday, Sept. 11, at an average price of $14.28, for $1,897,583.52. After the sale, he owned 105,500 shares valued at approximately $1,506,540, representing a 55.74% decrease in his position. A separate SEC filing disclosed the sale.
• Across the last quarter, insiders sold 148,800 shares valued at $2,118,785. Insiders currently own 2.38% of the stock.

Takeaway: The two disclosed transactions cut the executives’ stakes sharply, while the group’s reported ownership remains small at 2.38%.

What do the analyst ratings show?

Wall Street Zen wrote in its Saturday, Aug. 22 research note that the rating moved from “hold” to “buy.” Weiss Ratings wrote in its Monday, Oct. 12 report that it upgraded the shares from “buy (b-)” to “buy (b).”

One research analyst has assigned a Buy rating, and MarketBeat lists Teekay’s average rating as “Buy.”

Takeaway: Both published changes were upgrades, and MarketBeat’s current average rating is Buy.

What does Teekay do?

Founded in 1973, Teekay operates as an international marine transportation company focused on shipping energy products. It owns and operates crude oil and refined petroleum product tankers, primarily through its subsidiary Teekay Tankers.

Teekay Tankers serves oil companies, traders and other energy-sector customers, moving shipments on routes around the world. The fleet includes vessels designed for crude oil and petroleum products. Teekay has grown from a tanker operator into a marine transportation group with interests in energy shipping.

Takeaway: Teekay heads into its next reporting period with stronger quarterly numbers, upgraded ratings and sharply lower executive holdings.