Teekay Shipping $TK Testing Major Resistance On $30 Million Share Buyback

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On August 12, 2022, Teekay $TK stock began testing major resistance as the company announced a new $30 million share buyback program.

Teekay Corporation Announces New Share Repurchase Program

On August 11, 2022, Teekay Corporation (NYSE: TK) announced that its Board of Directors had authorized a share repurchase program for the repurchase of up to $30 million of the company’s outstanding common shares. Under the program, repurchases can be made from time to time in the open market, through privately-negotiated transactions, and by any other means permitted under the rules of the U.S. Securities and Exchange Commission, in each case at times and prices considered appropriate by the company. The timing of any purchases and the exact number of shares to be purchased under the program will be subject to the company’s discretion and on market conditions and other factors. As amended, the company intends to make all open market repurchases under the plan per Rule 10b-18 of the U.S. Securities Exchange Act of 1934.

Teekay is a leading provider of international crude oil and other marine transportation services. Teekay provides these services directly and through its controlling ownership interest in Teekay Tankers Ltd. (NYSE: TNK), one of the world’s largest owners and operators of mid-sized crude tankers. The consolidated Teekay entities manage and operate 60 conventional tankers and other marine assets. With offices in eight countries and approximately 2,500 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world’s leading energy companies and the Australian government.

Bullish Option Flow Detected In Teekay $TK Stock

Guerilla Stock Trading has detected bullish option flow in Teekay $TK stock on August 12, 2022.

Tk Option Flow

Make sure to review this lesson on option flow so that you understand the image above.

Volume and open interest in the January 2023 $5 strike call has been trending higher.

Tk Call Option Jan

Teekay Tankers Ltd. Reports Second Quarter 2022 Results

On August 4, 2022, Teekay Tankers $TNK reported the company’s results for June 30, 2022. Teekay Tankers reported Q2 adjusted EPS of 76c versus the ($1.23) reading from last year. The company reported Q2 revenue of $242.39M versus the consensus estimate of $114.58M.

The company said, “The wide-ranging impacts of Russia’s invasion of Ukraine are reshaping global energy markets. With Europe reducing imports of Russian crude oil and replacing them with longer-haul cargoes from across the Atlantic basin or through the Suez Canal, and with Russian cargoes increasingly flowing to China and India, the improvement in tanker tonne-mile demand has been significant. These changes appear likely to be sustained, as sanctions are coming into force which will formalize import restrictions that have thus far been largely voluntary. Given the draft restrictions and parcel sizes in many of the most impacted ports, this newly created tonne-mile demand has disproportionately benefited mid-sized tankers, driving rates to their highest level in two years. Meanwhile, tanker supply fundamentals are as supportive as they have been at any point during the last 25 years, with net supply growth in the mid-sized segments expected to be negligible or negative from now until 2025 and little capacity for additional orders that could deliver during this period.”

Teekay Tankers initiated with a Buy at Jefferies

On July 20, 2022, Jefferies analyst Omar Nokta initiated coverage of Teekay Tankers with a Buy rating and a $25 price target. The analyst launched coverage of the maritime shipping industry and viewed those with modern fleets positioned to capture higher, out-sized earnings. He sees Teekay as well positioned to reap the benefits of a tanker market recovery even with an older, non-eco fleet.

Teekay $TK Chart Technical Analysis

Teekay $TK stock is in a technical weak uptrend. However, traders are waiting to see if the stock can break through the quadruple top resistance level that has held for all of 2022. Teekay stock is approaching overbought territory, so a trend reversal here is possible. It explains why the Board approved a $30 million share buyback program. Can insider buying push the stock through this seemingly impenetrable resistance level?

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