Safe Bulkers (NYSE:SB) Shares Gap Up on Strong Earnings

Key Points

• Safe Bulkers beat quarterly expectations, reporting EPS of $0.28 versus the $0.22 consensus and revenue of $87.47 million versus $77.50 million. Shares opened at $7.98, up from a prior close of $7.47.
• The company increased its quarterly dividend to $0.075 per share from $0.06, equivalent to $0.30 annually and a 3.9% yield.
• Wall Street’s consensus rating remains Hold, with an average price target of $6.00, despite one analyst upgrading the stock to “strong buy.” Institutional investors own 21.69% of the company.

Shares of Safe Bulkers, Inc (NYSE:SB - Get Free Report) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $7.47, but opened at $7.98. Safe Bulkers shares last traded at $7.6630, with a volume of 247,646 shares changing hands.

The shipping company reported $0.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.06. Safe Bulkers had a net margin of 18.73% and a return on equity of 6.45%. The company had revenue of $87.47 million for the quarter, compared to analysts' expectations of $77.50 million.

Safe Bulkers Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, August 26th. Shareholders of record on Thursday, August 13th will be issued a $0.075 dividend. This is an increase from Safe Bulkers's previous quarterly dividend of $0.06. This represents a $0.30 annualized dividend and a dividend yield of 3.9%. The ex-dividend date of this dividend is Thursday, August 13th. Safe Bulkers's dividend payout ratio is currently 53.33%.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen upgraded Safe Bulkers from a "buy" rating to a "strong-buy" rating in a report on Monday, June 29th. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $6.00.

Institutional Trading of Safe Bulkers

A number of hedge funds have recently modified their holdings of SB. PNC Financial Services Group Inc. grew its holdings in shares of Safe Bulkers by 77.7% during the first quarter. PNC Financial Services Group Inc. now owns 4,917 shares of the shipping company's stock valued at $31,000 after buying an additional 2,150 shares in the last quarter. Mercer Global Advisors Inc. ADV acquired a new stake in Safe Bulkers during the 4th quarter worth about $48,000. Public Employees Retirement System of Ohio acquired a new stake in shares of Safe Bulkers during the fourth quarter worth approximately $49,000. Susquehanna Fundamental Investments LLC purchased a new position in Safe Bulkers during the third quarter valued at approximately $46,000. Finally, Tower Research Capital LLC TRC grew its position in Safe Bulkers by 73.4% during the second quarter. Tower Research Capital LLC TRC now owns 11,088 shares of the shipping company's stock valued at $40,000 after purchasing an additional 4,692 shares in the last quarter. Hedge funds and other institutional investors own 21.69% of the company's stock.

Safe Bulkers Trading Up 3.1%

The stock has a market cap of $787.30 million, a price-to-earnings ratio of 17.11 and a beta of 0.84. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.37 and a current ratio of 1.37. The company's 50 day simple moving average is $6.78 and its two-hundred day simple moving average is $6.40.

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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