Safe Bulkers (NYSE:SB) Shares Gap Down - Here's Why

Key Points

• Safe Bulkers shares fell 6.8%, opening at $8.16 after previously closing at $8.93, with trading volume exceeding 1.5 million shares.
• Analyst sentiment remains cautious: Wall Street Zen downgraded the stock from “strong buy” to “buy,” while the broader analyst consensus is “Hold” with a $6.00 average price target.
• The company exceeded quarterly expectations, reporting $0.28 in earnings per share versus a $0.22 estimate and $87.47 million in revenue. Safe Bulkers also raised its quarterly dividend to $0.075, implying a 3.6% yield.

Safe Bulkers, Inc (NYSE:SB - Get Free Report)'s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $8.93, but opened at $8.16. Safe Bulkers shares last traded at $8.2270, with a volume of 1,517,841 shares trading hands.

Analysts Set New Price Targets

Separately, Wall Street Zen cut shares of Safe Bulkers from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 1st. One research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, Safe Bulkers presently has an average rating of "Hold" and an average target price of $6.00.

Safe Bulkers Stock Down 6.8%

The firm has a 50-day moving average price of $7.73 and a 200 day moving average price of $6.96. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.00 and a quick ratio of 1.00. The company has a market cap of $847.76 million, a price-to-earnings ratio of 10.71 and a beta of 0.82.

Safe Bulkers (NYSE:SB - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The shipping company reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.06. The business had revenue of $87.47 million during the quarter, compared to analysts' expectations of $77.50 million. Safe Bulkers had a return on equity of 9.63% and a net margin of 28.29%.

Safe Bulkers Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, August 26th. Investors of record on Thursday, August 13th were paid a $0.075 dividend. This represents a $0.30 annualized dividend and a dividend yield of 3.6%. This is a boost from Safe Bulkers's previous quarterly dividend of $0.06. The ex-dividend date was Thursday, August 13th. Safe Bulkers's dividend payout ratio is currently 38.46%.

Institutional Trading of Safe Bulkers

Several hedge funds and other institutional investors have recently bought and sold shares of SB. California State Teachers Retirement System increased its holdings in shares of Safe Bulkers by 63.4% during the second quarter. California State Teachers Retirement System now owns 4,543 shares of the shipping company's stock worth $29,000 after purchasing an additional 1,762 shares during the period. PNC Financial Services Group Inc. raised its holdings in Safe Bulkers by 77.7% in the 1st quarter. PNC Financial Services Group Inc. now owns 4,917 shares of the shipping company's stock valued at $31,000 after acquiring an additional 2,150 shares in the last quarter. Legal & General Group Plc bought a new stake in shares of Safe Bulkers during the 2nd quarter valued at $34,000. Tower Research Capital LLC TRC grew its holdings in shares of Safe Bulkers by 73.4% during the 2nd quarter. Tower Research Capital LLC TRC now owns 11,088 shares of the shipping company's stock worth $40,000 after purchasing an additional 4,692 shares in the last quarter. Finally, Cetera Investment Advisers bought a new position in shares of Safe Bulkers in the second quarter worth $41,000. Institutional investors and hedge funds own 21.69% of the company's stock.

About Safe Bulkers

Safe Bulkers Inc NYSE: SB is a dry bulk shipping company engaged in the ocean transport of commodities such as iron ore, coal, grain, and fertilizers. The company operates a modern fleet of vessels, including Panamax, Supramax and Kamsarmax bulk carriers, designed to serve a variety of trade routes and cargo types. Safe Bulkers’ fleet is employed under both time charter and voyage charter arrangements, offering flexibility to respond to market demand and optimize vessel utilization.

Founded in 2008, Safe Bulkers began trading its shares on the New York Stock Exchange in the same year, establishing itself as a publicly listed provider of dry bulk transportation services.

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