Star Bulk Carriers (NASDAQ:SBLK) Sets New 52-Week High – Here’s Why

Shares of Star Bulk Carriers Corp. (NASDAQ:SBLK) hit a new 52-week high during mid-day trading on Friday . The company traded as high as $28.28 and last traded at $26.92, with a volume of 3212281 shares changing hands. The stock had previously closed at $26.69.

Key Star Bulk Carriers News

Here are the key news stories impacting Star Bulk Carriers this week:

• Positive Sentiment: Star Bulk Carriers beat Q1 earnings expectations and posted a net profit of $58.5 million, signaling solid operating performance in the dry bulk shipping market. Article Title
• Positive Sentiment: The company declared a quarterly dividend of $0.50 per share, up from $0.37 previously, reinforcing its shareholder-return story and supporting the stock’s yield appeal. Article Title
• Positive Sentiment: Shares also benefited from the broader message that SBLK delivered an earnings and revenue surprise versus estimates, which can attract momentum buyers. Article Title
• Neutral Sentiment: A COO stock sale was disclosed, but it was made under a pre-arranged 10b5-1 trading plan, making it less likely to be viewed as a negative signal. Article Title
• Neutral Sentiment: Some investors may also be weighing the recent run-up in SBLK’s share price, which could temper enthusiasm if they view valuation as stretched after the rally. Article Title

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Zacks Research raised Star Bulk Carriers from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, April 22nd. Weiss Ratings reiterated a “hold (c)” rating on shares of Star Bulk Carriers in a report on Friday, March 27th. Wall Street Zen raised Star Bulk Carriers from a “buy” rating to a “strong-buy” rating in a research note on Saturday, April 18th. Finally, Jefferies Financial Group initiated coverage on Star Bulk Carriers in a report on Friday, April 24th. They set a “buy” rating and a $29.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus target price of $29.00.

Star Bulk Carriers Stock Performance

The stock has a fifty day simple moving average of $24.47 and a 200-day simple moving average of $22.24. The stock has a market cap of $3.05 billion, a P/E ratio of 21.54 and a beta of 0.71. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.65 and a current ratio of 1.78.

Star Bulk Carriers (NASDAQ:SBLK) last released its earnings results on Wednesday, February 25th. The shipping company reported $0.62 EPS for the quarter, beating the consensus estimate of $0.52 by $0.10. Star Bulk Carriers had a return on equity of 6.82% and a net margin of 13.01%.The firm had revenue of $230.79 million for the quarter, compared to analysts’ expectations of $250.51 million. On average, equities analysts expect that Star Bulk Carriers Corp. will post 3.85 earnings per share for the current year.

Star Bulk Carriers Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 22nd. Investors of record on Friday, June 12th will be paid a $0.50 dividend. This is a boost from Star Bulk Carriers’s previous quarterly dividend of $0.37. This represents a $2.00 annualized dividend and a dividend yield of 7.4%. The ex-dividend date of this dividend is Friday, June 12th. Star Bulk Carriers’s dividend payout ratio (DPR) is 202.74%.

Insiders Place Their Bets

In related news, COO Nikolaos Reskos sold 33,103 shares of the business’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $26.28, for a total transaction of $869,946.84. Following the transaction, the chief operating officer directly owned 407,775 shares in the company, valued at approximately $10,716,327. The trade was a 7.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 43,189 shares of company stock worth $1,122,645 in the last 90 days. 0.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of SBLK. USA Financial Formulas acquired a new position in shares of Star Bulk Carriers during the 4th quarter worth about $26,000. Triumph Capital Management acquired a new stake in Star Bulk Carriers in the 3rd quarter valued at about $26,000. Rhumbline Advisers grew its holdings in Star Bulk Carriers by 141.7% during the third quarter. Rhumbline Advisers now owns 1,743 shares of the shipping company’s stock worth $32,000 after purchasing an additional 1,022 shares during the period. Sunbelt Securities Inc. bought a new position in Star Bulk Carriers during the third quarter worth about $33,000. Finally, Leonteq Securities AG acquired a new position in Star Bulk Carriers during the fourth quarter worth approximately $38,000. Institutional investors own 33.91% of the company’s stock.

Star Bulk Carriers Company Profile

Star Bulk Carriers Corp is a global shipping company engaged in the ocean transport of dry bulk commodities. The company owns and operates a diversified fleet of bulk carriers, including Handymax, Supramax, Panamax and Capesize vessels. Its ships are designed to carry a broad range of cargoes, such as iron ore, coal, grain, bauxite and phosphate, catering to industrial and agricultural customers worldwide.

The company’s vessels operate on major trade routes across the Atlantic, Pacific and Indian Oceans, connecting producers and consumers in Asia, Europe, North and South America.