NAT

Nordic American Tankers Limited

2.79
USD
2.20%
2.79
USD
2.20%
1.40 3.35
52 weeks
52 weeks

Mkt Cap 479.78M

Shares Out 171.96M

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Why Nordic American Tankers Shares Fell 21.3% Today

Shares of oil tanker stock Nordic American Tankers (NYSE: NAT) fell as much as 21.3% in trading today after the company gave the market an update on operations. Shares closed the day down 11.4%. In a press release before the market opened, Nordic American Tankers' management said that they will announce first-quarter 2022 results before the market opens on May 31, 2022. And for the second quarter, they expect time charter equivalent rates of about $20,000 per day with about 70% of capacity booked. The rate is high for the tanker industry, but low utilization isn't a great sign in an environment that should be strong for the industry. To put today's price announcement in context, in the fourth quarter of 2021 the company reported time charter equivalent rates of $10,100 per day. Shares of Nordic American Tankers are up about 70% from their lows before Russia invaded Ukraine, which was a big driver of recent demand. But that surge in demand may be short-lived, and investors may be seeing that the pop will fade in time if day rates don't remain elevated. Long-term, there's a significant risk that revenue per day is at or near its peak and will decline from here, which isn't great for a company that's been losing money consistently in the oil tanker market. 10 stocks we like better than Nordic American Tankers When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Nordic American Tankers wasn't one of them! That's right -- they think these 10 stocks are even better buys. *Stock Advisor returns as of April 27, 2022 Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

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