Nordic American Tankers: A Family's Bet on Tanker Recovery Amid Volatility

Nordic American Tankers Ltd (NYSE: NAT) has quietly become a battleground for insider confidence. Over the past year, the Hansson family—led by Founder and CEO Herbjorn Hansson and his son Alexander—has steadily increased its ownership stake through a series of strategic share purchases. These transactions, totaling over 300,000 shares in 2025 alone, reflect an unwavering belief in the company's ability to navigate one of the most volatile industries on Earth. For investors, this insider buying presents a compelling signal: the Hanssons are doubling down on a stock they believe is undervalued—and positioned to thrive as global tanker markets stabilize.

The Hanssons' Playbook: Buying When Others Flee

The Hansson family's purchases have been both methodical and timed to moments of market uncertainty. In April 2025, they each bought 100,000 shares at $2.19, a price that now looks opportunistic given NAT's subsequent rise to $2.60 by late May. This price trajectory suggests the family saw value in a stock trading at a 10.86% dividend yield—a figure that has historically attracted income investors even during industry downturns.

Their confidence is not unfounded. NAT has maintained a 72.1% gross profit margin, among the highest in the tanker sector, thanks to its focus on modern, fuel-efficient Suezmax vessels. The company's fleet of 21 ships, bolstered by a recent $60M+ acquisition of a secondhand tanker, positions it to capitalize on rising demand for crude oil transport. This strategy aligns with industry trends: the U.S. ban on Chinese shipping giant Cosco, for instance, has already created $100+ million in incremental revenue for NAT and peers.

A Dividend Machine in a Volatile Sector

Nordic American Tankers' dividend history is a standout feature. With a 27-year streak of quarterly payouts, it has outlasted countless competitors during the tanker industry's boom-and-bust cycles. The $0.12 per share dividend (as of Q1 2024) translates to a $0.48 annual payout, far exceeding the current stock price. Even if NAT's share price remains stagnant, investors collect a 17.6% return on their investment annually—a yield that rivals many fixed-income instruments.

Historical performance further validates this income-driven strategy. A backtest of buying NAT on its ex-dividend date and holding for 90 days from 2020 to 2025 revealed an average return of 12.9%, outperforming the benchmark's 1.76% during the same period. The strategy demonstrated resilience, with a Sharpe ratio of 0.22, indicating strong risk-adjusted returns, and a maximum drawdown of -23.8%, underscoring its ability to withstand market volatility. This aligns with the Hanssons' timing, as their purchases often coincided with ex-dividend dates, capitalizing on the dividend's income potential and price stability following payout.

Critics may argue that the dividend is unsustainable in a weak market. Yet the company's current ratio of 1.65—a liquidity measure优于 industry peers—suggests it can weather short-term headwinds. The Hanssons' personal stake, now exceeding 9.3 million shares, further insulates the dividend: management has little incentive to cut payouts while their wealth is tied directly to the stock's performance.

Risks: Oil Demand and Regulatory Whiplash

No tanker investment is without risk. A sudden drop in global oil demand—driven by electric vehicle adoption or an economic slowdown—could idle fleets and slash revenues. Additionally, regulatory changes, such as stricter environmental rules or geopolitical sanctions, remain unpredictable. NAT's SEC filings explicitly warn of these threats, including the impact of OPEC policy shifts and shipping route disruptions.

Yet the Hanssons' actions suggest they've already priced these risks into their decision. Their purchases occurred during periods of heightened uncertainty, including the U.S.-China shipping conflict and lingering concerns about oil storage trends. This timing underscores their belief that valuation trumps volatility: at current prices, NAT trades at just $2.60 per share, a discount to its 52-week high of $3.20 and well below its $10+ peak in 2018.

The Case for Immediate Action

Investors seeking income and exposure to a cyclical rebound should consider NAT as a contrarian play. The Hanssons' $438,000 combined investment in April 、2025—and their subsequent增持—send a clear message: this family views the stock as a bargain. With a dividend yield that outpaces 10-year Treasury bonds by over 1,000 basis points, and a management team with skin in the game, NAT offers asymmetric upside.

Final Analysis: A Tanker Stock for the Long Haul

Nordic American Tankers is not for the faint-hearted. The tanker industry's cyclicality ensures roller-coaster price swings. But for income-focused investors with a 3–5 year horizon, the stock's 10.86% dividend yield, strong liquidity, and insider-driven confidence create a compelling case. The Hanssons' repeated buying is a rare signal of conviction in a sector prone to panic selling.

Act now, and you'll be positioned to benefit if—and when—the tanker market recovers. The Hanssons are already betting on it.

Disclaimer: Past performance does not guarantee future results. Investors should conduct their own research and consult with a financial advisor.