3. International Seaways, Inc. (NYSE:INSW)
Number of Hedge Fund Holders: 19
YTD Share Price Gain as of October 3: 130.97%
International Seaways, Inc. (NYSE:INSW) is a New York-based company that owns and operates a fleet of vessels for the transportation of crude oil and petroleum products in the international flag trade. On September 12, International Seaways, Inc. (NYSE:INSW) declared a $0.12 per share quarterly dividend, in line with previous. The dividend was distributed to shareholders on September 28. International Seaways, Inc. (NYSE:INSW) is one of the best-performing small-cap stocks of 2022.
On July 27, BTIG analyst Gregory Lewis upgraded International Seaways, Inc. (NYSE:INSW) to Buy from Neutral with a $30 price target. The combination of consistent increases in global oil production, robust global oil demand, and moderating fleet growth over the next few years indicates increasing crude tanker rates in the medium term, the analyst told investors. The analyst believes the “worst is in the rearview mirror for crude tankers” and expects a “gradual melt up in rates into 2023.” He saw 30% upside in International Seaways, Inc. (NYSE:INSW) stock.
According to Insider Monkey’s Q2 data, 19 hedge funds were bullish on International Seaways, Inc. (NYSE:INSW), up from 17 funds in the preceding quarter. Stephen C. Freidheim’s Cyrus Capital Partners is the biggest stakeholder of the company, with 1.76 million shares worth $37.3 million.
Here is how ClearBridge Investments mentioned International Seaways, Inc. (NYSE:INSW) in the Q2 2022 investor letter:
“The Strategy also benefited from our holding in International Seaways, Inc. (NYSE:INSW), in the energy sector, which owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products. The company benefited during the quarter as a result of tightness in the oil market, particularly in Europe, as low global inventories and high demand have spurred greater need for transportation between states that are net energy producers with those that are net energy consumers.
Additionally, economic sanctions placed on Russia and its companies have reduced the global number of oil and petroleum transportation ships, resulting in greater demand for International Seaways’s services and allowing it to increase its shipping rates, to the benefit of its bottom line. We continue to view the company as a strong value play, as decades of underinvestment in maritime shipping has resulted in many ships approaching a forced retirement date with no obvious replacements.
As the number of available ships declines, particularly specialized ships such as International Seaways’s energy transports, it should help to bolster the company’s pricing and negotiation power with its customers. We believe the company’s shares are currently trading at substantially below the current book value of the company’s assets, and as a result we continue to have high conviction in International Seaways as a long-term value creation opportunity.”
