Star Bulk Carriers (NASDAQ:SBLK) Hits New 12-Month High - Should You Buy?

Key Points

• Star Bulk Carriers reached a new 52-week high of $32.98, while analysts maintain a consensus “Buy” rating and an average price target of $31.50.
• The company exceeded quarterly earnings expectations, reporting $1.21 in EPS versus the $0.95 consensus estimate, with $284.6 million in revenue.
• Star Bulk raised its quarterly dividend to $0.90 per share, implying an annualized yield of about 11.1%; insiders have also been net buyers over the past 90 days.

Shares of Star Bulk Carriers Corp. (NASDAQ:SBLK - Get Free Report) hit a new 52-week high during trading on Monday . The company traded as high as $32.98 and last traded at $32.1570, with a volume of 31332 shares trading hands. The stock had previously closed at $32.48.

Wall Street Analyst Weigh In

A number of research firms recently commented on SBLK. Zacks Research raised Star Bulk Carriers from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 14th. Weiss Ratings raised Star Bulk Carriers from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, August 27th. Finally, Jefferies Financial Group lifted their price target on Star Bulk Carriers from $29.00 to $31.00 and gave the stock a "buy" rating in a report on Thursday, May 28th. One analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of $31.50.

Star Bulk Carriers Trading Down 0.4%

The company has a quick ratio of 1.74, a current ratio of 1.91 and a debt-to-equity ratio of 0.32. The firm has a market cap of $3.67 billion, a P/E ratio of 12.63 and a beta of 0.70. The firm's 50-day simple moving average is $29.29 and its 200 day simple moving average is $26.66.

Star Bulk Carriers (NASDAQ:SBLK - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The shipping company reported $1.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.95 by $0.26. The company had revenue of $284.60 million during the quarter, compared to analyst estimates of $284.29 million. Star Bulk Carriers had a net margin of 23.87% and a return on equity of 11.72%. As a group, analysts expect that Star Bulk Carriers Corp. will post 4.32 earnings per share for the current year.

Star Bulk Carriers Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st were issued a dividend of $0.90 per share. This represents a $3.60 annualized dividend and a yield of 11.1%. This is a positive change from Star Bulk Carriers's previous quarterly dividend of $0.50. The ex-dividend date of this dividend was Friday, August 21st. Star Bulk Carriers's dividend payout ratio is currently 141.18%.

Insiders Place Their Bets

In other news, insider Charis Plakantonaki bought 3,000 shares of the stock in a transaction on Tuesday, September 15th. The shares were purchased at an average cost of $28.27 per share, for a total transaction of $84,810.00. Following the completion of the purchase, the insider directly owned 58,778 shares in the company, valued at $1,661,654.06. This represents a 5.38% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, COO Nikolaos Rescos purchased 10,000 shares of the company's stock in a transaction dated Tuesday, September 15th. The shares were purchased at an average cost of $28.27 per share, for a total transaction of $282,700.00. Following the transaction, the chief operating officer directly owned 410,875 shares in the company, valued at approximately $11,615,436.25. The trade was a 2.49% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders bought 170,400 shares of company stock valued at $4,817,208 and sold 81,650 shares valued at $2,488,635.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the business. Leonteq Securities AG bought a new stake in Star Bulk Carriers during the 4th quarter valued at $38,000. SG Americas Securities LLC bought a new position in shares of Star Bulk Carriers in the first quarter worth $187,000. Summit Securities Group LLC purchased a new position in shares of Star Bulk Carriers in the first quarter valued at $193,000. State of Wyoming raised its stake in shares of Star Bulk Carriers by 190.3% during the 1st quarter. State of Wyoming now owns 10,363 shares of the shipping company's stock valued at $238,000 after purchasing an additional 6,793 shares during the period. Finally, Empowered Funds LLC bought a new stake in shares of Star Bulk Carriers during the 1st quarter valued at $403,000. 33.91% of the stock is owned by institutional investors.

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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