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

Key Points

• SFL shares moved above their 200-day moving average, trading as high as $11.41 and last changing hands at about $11.10. The stock’s 200-day average was $10.46, a technical sign some investors may view positively.
• Analysts are still broadly constructive, with BTIG raising its price target to $14 and maintaining a buy rating. MarketBeat data shows a consensus rating of “Moderate Buy” and an average target price of $14.00.
• The company reported better-than-expected quarterly results and raised its dividend. EPS came in at $0.20 versus $0.07 expected, revenue beat estimates, and the quarterly dividend was increased to $0.22 per share, implying an annualized yield of 7.9%.

SFL Corporation Ltd. (NYSE:SFL - Get Free Report) crossed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $10.46 and traded as high as $11.41. SFL shares last traded at $11.0960, with a volume of 943,398 shares traded.

Analyst Upgrades and Downgrades

Several research firms have weighed in on SFL. BTIG Research raised their price objective on shares of SFL from $12.00 to $14.00 and gave the company a "buy" rating in a research report on Tuesday, May 12th. Weiss Ratings upgraded shares of SFL from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, May 15th. Finally, Wall Street Zen cut shares of SFL from a "buy" rating to a "hold" rating in a research report on Saturday. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $14.00.

SFL Price Performance

The company has a current ratio of 0.32, a quick ratio of 0.32 and a debt-to-equity ratio of 1.84. The stock has a market capitalization of $1.60 billion, a P/E ratio of 46.24 and a beta of 0.44. The company has a fifty day simple moving average of $11.35 and a two-hundred day simple moving average of $10.46.

SFL (NYSE:SFL - Get Free Report) last issued its quarterly earnings results on Tuesday, May 12th. The shipping company reported $0.20 EPS for the quarter, topping the consensus estimate of $0.07 by $0.13. The company had revenue of $174.48 million during the quarter, compared to analysts' expectations of $170.77 million. SFL had a net margin of 4.37% and a return on equity of 0.26%. SFL's revenue was down 6.8% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.24) EPS.

SFL Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 22nd. Shareholders of record on Wednesday, May 27th were issued a dividend of $0.22 per share. The ex-dividend date of this dividend was Wednesday, May 27th. This represents a $0.88 dividend on an annualized basis and a yield of 7.9%. This is a boost from SFL's previous quarterly dividend of $0.20. SFL's dividend payout ratio (DPR) is presently 366.67%.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in SFL. EverSource Wealth Advisors LLC lifted its stake in SFL by 789.3% in the second quarter. EverSource Wealth Advisors LLC now owns 3,317 shares of the shipping company's stock valued at $28,000 after buying an additional 2,944 shares during the period. Triumph Capital Management acquired a new stake in SFL in the third quarter worth $32,000. Signaturefd LLC boosted its position in shares of SFL by 30.5% during the fourth quarter. Signaturefd LLC now owns 6,008 shares of the shipping company's stock worth $47,000 after purchasing an additional 1,405 shares in the last quarter. Kemnay Advisory Services Inc. bought a new position in shares of SFL during the fourth quarter worth $47,000. Finally, Quadrant Capital Group LLC grew its holdings in shares of SFL by 122.3% in the 4th quarter. Quadrant Capital Group LLC now owns 6,139 shares of the shipping company's stock valued at $48,000 after buying an additional 3,377 shares during the period. Institutional investors and hedge funds own 28.59% of the company's stock.

SFL Company Profile

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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