INSW Stock: 363 Institutions Own Over 92% of This Shipping Company
May 28, 2025
Why INSW Stock Is Down But Not Out
The global shipping industry is notorious for being cyclical. When demand for goods and raw materials is high around the globe, shipping rates soar. When the economy slows, so does global trade, and this makes shipping stocks extremely volatile.
This boom-and-bust cycle in shipping makes it a tough industry to play for short-term traders. However, for long-term income investors who can be patient and stomach some volatility, shipping companies could be cash-generating machines.
One shipping company I think income investors should pay attention to is International Seaways Inc (NYSE:INSW). Over the past one year, INSW stock has declined closed to 36%. However, this decline in price could be a blessing in disguise for income investors.
About International Seaways Inc
Headquartered in New York, New York, International Seaways is a key player in the shipping industry, helping transport oil and fuels globally.
The company owns and operates a large fleet of 78 ships and operates in two segments: Crude Tankers and Product Carriers.
International Seaways’ fleet includes tankers like Very Large Crude Carriers (VLCCs) and Suezmax tankers that transport crude oil. The fleet also has smaller vessels that carry refined products, such as Medium Range, Long Range 1, and Long Range 2 tankers.
This shipping company also offers ship-to-ship (STS) lightering, which is essentially a service that helps transfer oil between ships at sea. STS lightering requires special equipment and vessels, which International Seaways also owns.
International Seaways serves independent and state-owned oil companies, oil traders, refineries, and international government entities. (Source: “Profile,” Yahoo! Finance, last accessed May 21, 2025.)
Financial Performance Makes Bullish Case for INSW Stock
On May 8, International Seaways reported its financial performance for the first quarter of 2025, ended on March 31. While the tanker market has cooled a bit, the company has still delivered a solid financial result.
It reported net income of $50.0 million, or $1.00 per diluted share. This was down from $144.0 million, or $2.92 per share, in the same quarter last year. Adjusted net income for the quarter was $40.0 million, or $0.80 per share.
Despite the decline in net income, International Seaways’ balance sheet remains very strong. As of March 31, it had $673.0 million in total liquidity, including $133.0 million in cash and $540.0 million in available credit. To sweeten things a little bit more for shareholders, the company also paid down $80.0 million in debt during the quarter. (Source: “International Seaways Reports First Quarter 2025 Results,” International Seaways Inc, May 8, 2025.)
What’s ahead when it comes to the company’s financial performance?
It’s rosy, to say the least.
Wall Street analysts are projecting earnings per share (EPS) of $4.53 in 2025 for International Seaways, with high estimates of $6.02 per share. For 2026, EPS are expected to be around $5.10, with high estimates of $8.35 per share. (Source: “Analysis,” Yahoo! Finance, last accessed May 21, 2025.)
All in all, the company’s financial performance tells a good story, which could result in a higher INSW stock price.
Chart Courtesy of StockCharts.com
INSW Stockholders Keep Getting Paid
While earnings cooled off a little, International Seaways didn’t really pump the brakes when it came to shareholder rewards. INSW stock pays a regular dividend and a supplemental dividend. The former is $0.12 per share, and the latter is variable.
In the first quarter of 2025, the company paid a total dividend of $0.70 per share. For the second quarter, International Seaways declared a dividend of $0.60 per share. This is in line with company’s policy of returning 75% of adjusted net income to INSW stock investors in the form of dividends. Over the past 12 months, it has paid out a total of $4.00 per share in dividends.
At the current price, INSW stock has a juicy dividend yield of 10.47%.
Mind you, International Seaways has made shareholder returns a core part of its strategy. The management team has made it clear that it doesn’t want to hoard cash and prefers to distribute it responsibly. It is also making sure the balance sheet remains healthy, and there are fleet upgrades as well.
The Lowdown on INSW Stock
International Seaways continues to show resilience in the volatile tanker market. In the first quarter of 2025, it reported a decline in profits. However, despite these challenges, International Seaways maintains a robust financial position, with solid liquidity and debt that’s being reduced.
For some perspective, note that, as of March 31, 2025, the company held $673.0 million in total liquidity. Its market capitalization is around $1.88 billion. This liquidity alone represents roughly 36% of the market cap.
Furthermore, investors who own INSW stock continue to be nicely rewarded. At the current price, it has a dividend yield of over 10%—something that’s not common these days.
Lastly, INSW stock has massive institutional ownership. As per the most recent data, 363 institutional investors own 92.65% of all outstanding shares. The top three holders of INSW stock are BlackRock, Inc., The Vanguard Group, and Dimensional Fund Advisors LP. Combined, these three institutions hold 13.96 million shares of INSW. (Source: “Holders,” Yahoo! Finance, last accessed May 21, 2025.)
