Star Bulk Carriers (NASDAQ:SBLK) Reaches New 1-Year High - Still a Buy?

Key Points

• Star Bulk Carriers reached a new 52-week high of $31.29, with the stock recently trading near $31.14. Analysts maintain a favorable outlook, giving the company a consensus “Buy” rating and an average price target of $31.50.
• The company reported quarterly EPS of $1.21, exceeding estimates of $0.95, while revenue was broadly in line with expectations at $284.6 million.
• Star Bulk raised its quarterly dividend from $0.50 to $0.90 per share, implying a $3.60 annualized payout and an 11.6% yield, though its dividend payout ratio is elevated at 141.18%.

Star Bulk Carriers Corp. (NASDAQ:SBLK - Get Free Report) reached a new 52-week high on Tuesday . The company traded as high as $31.29 and last traded at $31.1370, with a volume of 112748 shares traded. The stock had previously closed at $30.87.

Wall Street Analyst Weigh In

A number of analysts have issued reports on SBLK shares. Zacks Research raised Star Bulk Carriers from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 14th. Jefferies Financial Group boosted their price target on shares of Star Bulk Carriers from $29.00 to $31.00 and gave the company a "buy" rating in a research report on Thursday, May 28th. Weiss Ratings raised shares of Star Bulk Carriers from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $32.00 price objective on shares of Star Bulk Carriers in a research report on Friday, May 22nd. One equities research analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Buy" and an average price target of $31.50.

Star Bulk Carriers Stock Up 0.3%

The company has a market capitalization of $3.51 billion, a PE ratio of 12.20 and a beta of 0.72. 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 50-day moving average of $27.64 and a two-hundred day moving average of $26.01.

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

Star Bulk Carriers Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st will be given a $0.90 dividend. The ex-dividend date of this dividend is Friday, August 21st. This is an increase from Star Bulk Carriers's previous quarterly dividend of $0.50. This represents a $3.60 dividend on an annualized basis and a yield of 11.6%. Star Bulk Carriers's dividend payout ratio is currently 141.18%.

Insider Activity at Star Bulk Carriers

In other news, COO Nikolaos Reskos sold 5,000 shares of the business's stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $29.50, for a total value of $147,500.00. Following the sale, the chief operating officer directly owned 400,875 shares of the company's stock, valued at approximately $11,825,812.50. The trade was a 1.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nikolaos Karellis sold 20,000 shares of Star Bulk Carriers stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $26.96, for a total value of $539,200.00. The SEC filing for this sale provides additional information. In the last three months, insiders sold 101,650 shares of company stock worth $3,027,835. 0.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Star Bulk Carriers

Several hedge funds have recently bought and sold shares of the company. Raiffeisen Bank International AG grew its position in Star Bulk Carriers by 26.3% in the 2nd quarter. Raiffeisen Bank International AG now owns 66,429 shares of the shipping company's stock valued at $1,659,000 after acquiring an additional 13,851 shares in the last quarter. BTG Pactual Asset Management US LLC grew its holdings in shares of Star Bulk Carriers by 3.9% in the second quarter. BTG Pactual Asset Management US LLC now owns 53,570 shares of the shipping company's stock valued at $1,338,000 after purchasing an additional 1,986 shares in the last quarter. Headlands Technologies LLC grew its holdings in shares of Star Bulk Carriers by 0.8% in the second quarter. Headlands Technologies LLC now owns 66,333 shares of the shipping company's stock valued at $1,656,000 after purchasing an additional 518 shares in the last quarter. Public Employees Retirement System of Ohio purchased a new stake in Star Bulk Carriers during the 2nd quarter worth approximately $1,371,000. Finally, Bank of America Corp DE increased its stake in Star Bulk Carriers by 48.5% during the 1st 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 period. Institutional investors and hedge funds 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.

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