Star Bulk Carriers (NASDAQ:SBLK) Stock Price Crosses Above 200-Day Moving Average - Should You Sell?

Key Points

• Star Bulk Carriers shares rose above their 200-day moving average, trading as high as $29.58 versus the $26.94 average, signaling improved technical momentum.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $31.50, while the company recently exceeded quarterly earnings expectations with $1.21 in EPS versus a $0.95 estimate.
• The company increased its quarterly dividend to $0.90, implying a 12.3% annualized yield, though its 141.18% payout ratio raises questions about dividend sustainability; some directors also recently sold shares.

Star Bulk Carriers Corp. (NASDAQ:SBLK - Get Free Report) shares passed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $26.94 and traded as high as $29.58. Star Bulk Carriers shares last traded at $29.20, with a volume of 1,595,841 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on SBLK shares. Weiss Ratings upgraded Star Bulk Carriers from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, August 27th. Zacks Research cut Star Bulk Carriers from a "strong-buy" rating to a "hold" rating in a report on Friday, September 18th. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $31.50.

Star Bulk Carriers Stock Performance

The company has a current ratio of 1.91, a quick ratio of 1.74 and a debt-to-equity ratio of 0.32. The company's fifty day moving average is $29.85 and its 200 day moving average is $26.94. The company has a market cap of $3.31 billion, a P/E ratio of 11.45, a price-to-earnings-growth ratio of 0.12 and a beta of 0.70.

Star Bulk Carriers (NASDAQ:SBLK - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The shipping company reported $1.21 earnings per share for the quarter, topping 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 during the quarter, compared to the consensus estimate of $284.29 million. As a group, equities analysts predict that Star Bulk Carriers Corp. will post 4.38 earnings per share for the current fiscal year.

Star Bulk Carriers Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st were issued a $0.90 dividend. This is an increase from Star Bulk Carriers's previous quarterly dividend of $0.50. This represents a $3.60 annualized dividend and a dividend yield of 12.3%. The ex-dividend date was Friday, August 21st. Star Bulk Carriers's dividend payout ratio (DPR) is presently 141.18%.

Insider Buying and Selling

In related news, Director Eleni Vrettou sold 3,500 shares of the stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $32.12, for a total transaction of $112,420.00. Following the completion of the sale, the director directly owned 73,686 shares in the company, valued at $2,366,794.32. This represents a 4.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Mahesh Balakrishnan sold 10,000 shares of the stock in a transaction dated Friday, September 18th. The shares were sold at an average price of $32.34, for a total value of $323,400.00. Following the sale, the director owned 29,080 shares of the company's stock, valued at $940,447.20. This represents a 25.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have purchased 170,400 shares of company stock worth $4,817,208 and have sold 95,150 shares worth $2,924,455.

Institutional Trading of Star Bulk Carriers

Institutional investors have recently made changes to their positions in the stock. Renaissance Technologies LLC grew its holdings in shares of Star Bulk Carriers by 13.0% in the first quarter. Renaissance Technologies LLC now owns 2,067,637 shares of the shipping company's stock worth $47,494,000 after purchasing an additional 237,248 shares during the last quarter. Cooper Creek Partners Management LLC bought a new stake in Star Bulk Carriers during the 1st quarter valued at $19,893,000. Arrowstreet Capital Limited Partnership bought a new stake in Star Bulk Carriers during the 1st quarter valued at $17,398,000. Fearnley Asset Management AS purchased a new stake in Star Bulk Carriers during the 4th quarter valued at $11,096,000. Finally, Bank of America Corp DE boosted its position 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 valued at $12,991,000 after buying an additional 184,837 shares during the period. Hedge funds and other institutional investors own 33.91% of the company's stock.

About Star Bulk Carriers

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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