Star Bulk Carriers Corp. (NASDAQ:SBLK) Stock Short Interest Jumps 61.4%

Key Points

• Short interest in Star Bulk Carriers rose 61.4% to 2.71 million shares as of September 15, representing 2.4% of shares outstanding and a days-to-cover ratio of 1.6.
• Analysts maintain a generally positive outlook, with three Buy ratings and one Hold rating producing a “Moderate Buy” consensus and an average price target of $31.50.
• The company increased its quarterly dividend to $0.90 per share, equivalent to a $3.60 annualized payout and a reported 12.3% yield, though its payout ratio stood at 141.18%.

Star Bulk Carriers Corp. (NASDAQ:SBLK - Get Free Report) was the recipient of a large increase in short interest in September. As of September 15th, there was short interest totaling 2,708,879 shares, an increase of 61.4% from the August 31st total of 1,678,864 shares. Based on an average daily volume of 1,710,656 shares, the days-to-cover ratio is presently 1.6 days. Currently, 2.4% of the company's stock are short sold.

Wall Street Analyst Weigh In

SBLK has been the subject of several recent analyst reports. Zacks Research cut shares of Star Bulk Carriers from a "strong-buy" rating to a "hold" rating in a report on Friday, September 18th. Weiss Ratings raised shares of Star Bulk Carriers from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, August 27th. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $31.50.

Insider Buying and Selling

In related news, insider Charis Plakantonaki bought 3,000 shares of the company's stock in a transaction on Tuesday, September 15th. The shares were acquired at an average cost of $28.27 per share, with a total value of $84,810.00. Following the completion of the acquisition, the insider owned 58,778 shares of the company's stock, valued at $1,661,654.06. The trade was a 5.38% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Mahesh Balakrishnan sold 10,000 shares of the stock in a transaction on Friday, September 18th. The stock was sold at an average price of $32.34, for a total value of $323,400.00. Following the completion of the sale, the director directly owned 29,080 shares in the company, valued at approximately $940,447.20. This represents a 25.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have bought 170,400 shares of company stock worth $4,817,208 and have sold 95,150 shares worth $2,924,455.

Hedge Funds Weigh In On Star Bulk Carriers

Hedge funds and other institutional investors have recently modified their holdings of the company. Impala Asset Management LLC increased its position in shares of Star Bulk Carriers by 39.2% during the 4th quarter. Impala Asset Management LLC now owns 167,000 shares of the shipping company's stock valued at $3,210,000 after purchasing an additional 47,000 shares during the last quarter. Bank of America Corp DE boosted its holdings in shares of Star Bulk Carriers by 48.5% in the first quarter. Bank of America Corp DE now owns 565,562 shares of the shipping company's stock worth $12,991,000 after buying an additional 184,837 shares during the last quarter. Hsbc Holdings PLC purchased a new position in shares of Star Bulk Carriers in the first quarter worth approximately $909,000. Counterpoint Mutual Funds LLC bought a new stake in Star Bulk Carriers during the first quarter valued at approximately $4,788,000. Finally, Fearnley Asset Management AS purchased a new stake in Star Bulk Carriers during the fourth quarter valued at approximately $11,096,000. 33.91% of the stock is owned by institutional investors.

Star Bulk Carriers Stock Performance

Shares of Star Bulk Carriers stock traded up $0.17 during trading on Wednesday, hitting $29.37. 1,041,534 shares of the company's stock traded hands, compared to its average volume of 1,464,514. Star Bulk Carriers has a 1 year low of $16.72 and a 1 year high of $32.88. The business has a 50-day simple moving average of $29.85 and a 200-day simple moving average of $26.94. The stock has a market capitalization of $3.33 billion, a P/E ratio of 11.50, a PEG ratio of 0.12 and a beta of 0.70. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.91 and a quick ratio of 1.74.

Star Bulk Carriers (NASDAQ:SBLK - Get Free Report) last posted its earnings results on Wednesday, August 5th. The shipping company reported $1.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.26. Star Bulk Carriers had a net margin of 23.87% and a return on equity of 11.72%. The business had revenue of $284.60 million for the quarter, compared to analysts' expectations of $284.29 million. As a group, analysts forecast that Star Bulk Carriers will post 4.38 EPS for the current year.

Star Bulk Carriers Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st were given a $0.90 dividend. This is a boost from Star Bulk Carriers's previous quarterly dividend of $0.50. The ex-dividend date of this dividend was Friday, August 21st. This represents a $3.60 dividend on an annualized basis and a yield of 12.3%. Star Bulk Carriers's payout ratio is presently 141.18%.

Star Bulk Carriers Company Profile

Star Bulk Carriers Corp. is a global dry bulk shipping company that owns and operates vessels used to transport major and minor bulk commodities. Its fleet serves the international supply chains for iron ore, grain, bauxite, fertilizers, steel products and other dry cargoes.

The company operates a diversified fleet that includes large Capesize and Newcastlemax vessels as well as Panamax, Ultramax and Supramax bulk carriers. Star Bulk's vessels serve customers and ports across major shipping routes worldwide, supporting commodity trade between producers, exporters and end markets.

Star Bulk Carriers was founded in 2006 and is headquartered in Maroussi, Greece, with the company incorporated in the Marshall Islands.

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