SFL (NYSE:SFL) Shares Gap Down - Here's What Happened

Key Points

• SFL Corporation Ltd.'s stock price fell significantly, gapping down from a previous close of $9.13 to an opening price of $8.41, and last traded at $7.96, indicating a decline of 15%.
• The company reported $0.01 earnings per share for the last quarter, a significant decrease from $0.16 per share the same period last year, despite a small increase in quarterly revenue.
• SFL announced a dividend cut, with a scheduled payment of $0.20 per share, resulting in an annual yield of 10.3% and a high payout ratio of 263.41%.

SFL Corporation Ltd. (NYSE:SFL - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $9.13, but opened at $8.41. SFL shares last traded at $7.96, with a volume of 2,264,156 shares.

SFL Trading Down 15.0%

The company has a 50-day moving average price of $8.99 and a 200-day moving average price of $8.74. The firm has a market capitalization of $1.13 billion, a price-to-earnings ratio of 18.94 and a beta of 0.56. The company has a debt-to-equity ratio of 2.14, a quick ratio of 0.45 and a current ratio of 0.45.

SFL (NYSE:SFL - Get Free Report) last posted its earnings results on Tuesday, August 19th. The shipping company reported $0.01 earnings per share for the quarter. SFL had a return on equity of 8.50% and a net margin of 6.20%.The business had revenue of $192.59 million during the quarter, compared to the consensus estimate of $192.40 million. During the same period in the previous year, the business earned $0.16 EPS. The business's quarterly revenue was up 1.0% on a year-over-year basis.

SFL Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 29th. Shareholders of record on Friday, September 12th will be paid a dividend of $0.20 per share. The ex-dividend date of this dividend is Friday, September 12th. This represents a $0.80 annualized dividend and a yield of 10.3%. SFL's dividend payout ratio is currently 263.41%.

Institutional Trading of SFL

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in SFL by 150.9% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,618,303 shares of the shipping company's stock worth $21,470,000 after purchasing an additional 1,574,696 shares during the period. American Century Companies Inc. increased its position in SFL by 27.2% during the 2nd quarter. American Century Companies Inc. now owns 3,297,605 shares of the shipping company's stock worth $27,469,000 after purchasing an additional 704,710 shares during the period. Nuveen LLC acquired a new position in SFL during the 1st quarter worth approximately $4,172,000. Nuveen Asset Management LLC increased its position in SFL by 27.6% during the 4th quarter. Nuveen Asset Management LLC now owns 947,311 shares of the shipping company's stock worth $9,682,000 after purchasing an additional 204,884 shares during the period. Finally, Victory Capital Management Inc. increased its position in SFL by 45.1% during the 1st quarter. Victory Capital Management Inc. now owns 653,547 shares of the shipping company's stock worth $5,359,000 after purchasing an additional 203,236 shares during the period. 28.59% of the stock is owned by hedge funds and other institutional investors.

About SFL

SFL Corporation Ltd., a maritime and offshore asset owning and chartering company, engages in the ownership, operation, and chartering out of vessels and offshore related assets on medium and long-term charters. The company operates in various sectors of the maritime, and shipping and offshore industries, including oil transportation, dry bulk shipments, chemical transportation, oil products transportation, container transportation, car transportation, and drilling rigs.

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