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) shares 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 trading hands.

SFL Price Performance

The company has a quick ratio of 0.45, a current ratio of 0.30 and a debt-to-equity ratio of 1.97. The stock has a market cap of $1.21 billion, a price-to-earnings ratio of 31.90 and a beta of 0.56. The company's 50-day moving average is $8.93 and its 200-day moving average is $8.68.

SFL (NYSE:SFL - Get Free Report) last posted its quarterly earnings results on Tuesday, August 19th. The shipping company reported $0.01 earnings per share (EPS) for the quarter. SFL had a net margin of 3.97% and a return on equity of 6.67%. The firm had revenue of $192.59 million during the quarter, compared to analyst estimates of $192.40 million. During the same quarter in the prior year, the business posted $0.16 earnings per share. The company's quarterly revenue was up 1.0% compared to the same quarter last year.

SFL Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 29th. Stockholders of record on Friday, September 12th will be issued 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 dividend yield of 9.6%. SFL's dividend payout ratio (DPR) is presently 415.38%.

Institutional Trading of SFL

Several hedge funds have recently modified their holdings of SFL. Brighton Jones LLC increased its holdings in shares of SFL by 8.2% during the fourth quarter. Brighton Jones LLC now owns 19,395 shares of the shipping company's stock worth $198,000 after buying an additional 1,474 shares in the last quarter. Wells Fargo & Company MN increased its holdings in shares of SFL by 16.3% during the fourth quarter. Wells Fargo & Company MN now owns 210,778 shares of the shipping company's stock worth $2,154,000 after buying an additional 29,496 shares in the last quarter. Legal & General Group Plc increased its holdings in shares of SFL by 22.2% during the fourth quarter. Legal & General Group Plc now owns 19,933 shares of the shipping company's stock worth $204,000 after buying an additional 3,615 shares in the last quarter. Raymond James Financial Inc. acquired a new stake in shares of SFL during the fourth quarter worth approximately $414,000. Finally, Sterling Capital Management LLC increased its holdings in shares of SFL by 883.5% during the fourth quarter. Sterling Capital Management LLC now owns 3,275 shares of the shipping company's stock worth $33,000 after buying an additional 2,942 shares in the last quarter. Institutional investors and hedge funds own 28.59% of the company's stock.

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.