NEW YORK (TheStreet) -- Shares of Teekay (TK) are skyrocketing 14.46% to $66.80 on heavy trading volume Tuesday after the company adopted a new dividend policy and announced its plans late Monday to increase its dividend by 75% to 80%.
The crude oil and gas marine transportation services company plans to increase its annualized cash dividend to between $2.20 and $2.30 a share beginning in the first quarter of 2015.
About 2.56 million shares of Teekay were traded as of 12:23 p.m. Tuesday, compared to the normal volume of about 456,000 shares a day.
Deutsche Bank upgraded the stock to "buy" from "hold" and raised its price target to $90 from $60 on Tuesday. The firm cited the company's "bold new dividend strategy."
Separately, TheStreet Ratings team rates TEEKAY CORP as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate TEEKAY CORP (TK) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."