EuroDry (NASDAQ:EDRY) Sees Significant Drop in Short Interest

Key Points

• EuroDry’s short interest fell 43.2% to 135,118 shares as of September 30, representing about 9.7% of shares outstanding and just 0.7 days to cover.
• The stock declined 6.6% to $47.47, while analyst sentiment remained mixed with a consensus rating of Hold and a $23.50 price target. EuroDry’s latest quarterly earnings exceeded EPS expectations, reporting $2.44 versus the $1.23 consensus estimate.
• EuroDry ordered a third 82,000-DWT Kamsarmax bulk carrier for approximately $37 million, expanding its newbuilding program to five vessels and potentially growing its fleet from 11 to 16 ships by 2029, though the expansion will require additional debt and equity financing.

EuroDry (NASDAQ:EDRY - Get Free Report) was the target of a significant drop in short interest in September. As of September 30th, there was short interest totaling 135,118 shares, a drop of 43.2% from the September 15th total of 237,860 shares. Approximately 9.7% of the shares of the stock are sold short. Based on an average daily trading volume, of 196,614 shares, the days-to-cover ratio is presently 0.7 days.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on EDRY shares. Weiss Ratings reiterated a "sell (d-)" rating on shares of EuroDry in a research note on Friday, August 21st. Zacks Research lowered shares of EuroDry from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, October 6th. Finally, Alliance Global Partners reissued a "buy" rating on shares of EuroDry in a research report on Friday, August 7th. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $23.50.

EuroDry Trading Down 6.6%

EuroDry stock traded down $3.35 during mid-day trading on Thursday, hitting $47.47. The company's stock had a trading volume of 93,714 shares, compared to its average volume of 68,950. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.28 and a quick ratio of 1.23. EuroDry has a 12 month low of $11.94 and a 12 month high of $73.07. The stock has a market cap of $136.10 million, a price-to-earnings ratio of 14.29 and a beta of 0.77. The business has a 50 day moving average price of $52.41 and a 200-day moving average price of $32.81.

EuroDry (NASDAQ:EDRY - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $2.44 EPS for the quarter, beating the consensus estimate of $1.23 by $1.21. The firm had revenue of $17.70 million during the quarter, compared to the consensus estimate of $17.86 million. EuroDry had a net margin of 15.02% and a return on equity of 8.77%. As a group, analysts forecast that EuroDry will post 5.77 EPS for the current year.

Insider Activity at EuroDry

In other news, Director Aristeidis P. Pittas sold 2,950 shares of EuroDry stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $50.76, for a total transaction of $149,742.00. Following the transaction, the director owned 33,020 shares in the company, valued at approximately $1,676,095.20. The trade was a 8.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Symeon Pariaros sold 2,700 shares of the company's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $42.00, for a total value of $113,400.00. Following the completion of the sale, the insider owned 4,576 shares in the company, valued at $192,192. This trade represents a 37.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 12,726 shares of company stock valued at $568,005. 51.40% of the stock is owned by insiders.

Hedge Funds Weigh In On EuroDry

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. MassMutual Private Wealth & Trust FSB purchased a new stake in shares of EuroDry during the third quarter valued at $32,000. BlackRock Inc. purchased a new stake in EuroDry in the 2nd quarter worth approximately $47,000. Finally, Renaissance Technologies LLC boosted its holdings in EuroDry by 53.6% in the 1st quarter. Renaissance Technologies LLC now owns 60,347 shares of the company's stock worth $1,189,000 after buying an additional 21,047 shares during the period. 2.44% of the stock is owned by institutional investors.

Key Headlines Impacting EuroDry

Here are the key news stories impacting EuroDry this week:

• Positive Sentiment: EuroDry ordered a third 82,000-DWT Kamsarmax bulk carrier from Hengli Shipbuilding for approximately $37 million. The eco-design vessel, compliant with EEDI Phase 3 standards, is scheduled for delivery in the third quarter of 2029. The order expands the company’s newbuilding program to five vessels and is expected to lower fleet age and improve fuel efficiency. EuroDry announces Kamsarmax construction order
• Positive Sentiment: Director Aristeidis Pittas purchased 700 EDRY shares at an average price of $51.18, investing $35,826 and increasing his direct ownership by 0.92%. Insider buying can signal confidence in the company’s outlook, although the transaction is modest relative to EuroDry’s market value. EuroDry director stock purchase
• Neutral Sentiment: The new vessel will be financed through a combination of debt and equity, and the contract remains conditional on receiving an acceptable bank refund guarantee. EuroDry expects its fleet to grow from 11 vessels today to 16 vessels by 2029, increasing capacity but also raising execution and market-cycle exposure. EuroDry GlobeNewswire release
• Negative Sentiment: Analyst sentiment remains cautious: coverage includes Buy, Hold, and Sell ratings, with a reported average rating of Hold and a consensus price target of $23.50. In addition, broader six-month insider activity has included substantially more selling than buying, which offsets some of the positive signal from Pittas’s latest purchase. EuroDry analyst and insider activity

EuroDry Company Profile

EuroDry Ltd. is a dry bulk shipping company that owns and operates vessels used to transport major and minor bulk commodities worldwide. Its fleet serves international trade routes and carries cargoes such as iron ore, grains, coal, steel products, and other dry bulk materials.

The company operates vessels in several dry bulk segments, including Handysize, Supramax, Ultramax, and Panamax ships. EuroDry manages the commercial and technical operations of its vessels through a combination of voyage charters, time charters, and other employment arrangements, depending on market conditions and customer requirements.

EuroDry was established in 1997 and is headquartered in Maroussi, Greece.

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