SFL (NYSE:SFL) Shares Pass Above 200 Day Moving Average - Should You Sell?

Key Points

• SFL shares recently moved above their 200‑day moving average, trading as high as $10.94 versus a 200‑day MA of $8.96 (last trade ~$10.93) on volume of ~955,526 shares.
• Analyst views are mixed — the consensus is a “Moderate Buy” with a consensus price target of $12.00 (BTIG raised its target to $12), though some shops have downgraded the stock.
• Fundamentals are strained: SFL reported a negative EPS (‑$0.04) and revenue down ~23% year‑over‑year with negative margins and high leverage (debt/equity ~2.04), but it pays a sizable quarterly dividend (annualized $0.80, ~7.3% yield).

SFL Corporation Ltd. (NYSE:SFL - Get Free Report)'s stock price passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $8.96 and traded as high as $10.94. SFL shares last traded at $10.9250, with a volume of 955,526 shares traded.

Analysts Set New Price Targets

SFL has been the subject of a number of recent research reports. Weiss Ratings upgraded SFL from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, February 2nd. Wall Street Zen downgraded SFL from a "hold" rating to a "sell" rating in a research report on Saturday. Finally, BTIG Research boosted their target price on SFL from $11.00 to $12.00 and gave the stock a "buy" rating in a research report on Wednesday, February 11th. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, SFL presently has an average rating of "Moderate Buy" and a consensus price target of $12.00.

SFL Stock Up 1.0%

The company has a quick ratio of 0.35, a current ratio of 0.36 and a debt-to-equity ratio of 2.04. The company has a 50-day simple moving average of $10.71 and a two-hundred day simple moving average of $8.96. The stock has a market cap of $1.58 billion, a P/E ratio of -54.63 and a beta of 0.39.

SFL (NYSE:SFL - Get Free Report) last announced its quarterly earnings data on Wednesday, February 11th. The shipping company reported ($0.04) earnings per share for the quarter. SFL had a negative net margin of 3.61% and a negative return on equity of 0.30%. The company had revenue of $175.51 million during the quarter, compared to the consensus estimate of $168.36 million. During the same quarter in the previous year, the firm posted $0.15 EPS. The business's revenue for the quarter was down 23.1% compared to the same quarter last year.

SFL Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 30th. Shareholders of record on Thursday, March 12th were given a $0.20 dividend. The ex-dividend date was Thursday, March 12th. This represents a $0.80 annualized dividend and a yield of 7.3%. SFL's payout ratio is presently -400.00%.

Hedge Funds Weigh In On SFL

A number of hedge funds and other institutional investors have recently made changes to their positions in SFL. Brighton Jones LLC raised 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 valued at $198,000 after acquiring an additional 1,474 shares in the last quarter. AQR Capital Management LLC grew its stake in SFL by 52.8% in the first quarter. AQR Capital Management LLC now owns 21,060 shares of the shipping company's stock worth $173,000 after purchasing an additional 7,273 shares during the period. Jane Street Group LLC grew its stake in SFL by 122.0% in the first quarter. Jane Street Group LLC now owns 181,556 shares of the shipping company's stock worth $1,489,000 after purchasing an additional 99,767 shares during the period. Cetera Investment Advisers grew its stake in SFL by 10.4% in the second quarter. Cetera Investment Advisers now owns 16,034 shares of the shipping company's stock worth $134,000 after purchasing an additional 1,510 shares during the period. Finally, Prudential Financial Inc. purchased a new stake in SFL in the second quarter worth $139,000. Institutional investors own 28.59% of the company's stock.

About SFL

Ship Finance International Limited NYSE: SFL is an independent owner of modern, large-size ocean-going vessels that provides finance and leasing services to the global shipping industry. The company’s fleet encompasses a diversified mix of crude oil tankers, product and chemical tankers, liquefied natural gas (LNG) carriers, dry bulk carriers, container vessels and floating production storage and offloading (FPSO) units. By structuring long-term charter agreements and bareboat leases with major oil companies, commodity traders and offshore operators, Ship Finance International seeks to deliver stable cash flows and risk-adjusted returns for its shareholders.

In its core business, Ship Finance International acquires or finances vessels through forward sales agreements and then charters them out under fixed-rate contracts, typically ranging from five to 20 years in duration.

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