Star Bulk Carriers (NASDAQ:SBLK) Hits New 52-Week High - Still a Buy?

Key Points

• Star Bulk Carriers reached a new 52-week high of $29.90, with shares trading near $29.87 and above their 50-day and 200-day moving averages.
• Analyst sentiment remains favorable, with three Buy ratings and one Hold rating; the stock has a “Moderate Buy” consensus and an average price target of $31.50.
• The company increased its quarterly dividend to $0.90, implying a 12.1% annualized yield, although its payout ratio is elevated at 141.18%; insiders sold 75,000 shares over the past three months.

Star Bulk Carriers Corp. (NASDAQ:SBLK - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The company traded as high as $29.90 and last traded at $29.8670, with a volume of 364215 shares. The stock had previously closed at $29.05.

Analysts Set New Price Targets

A number of brokerages have weighed in on SBLK. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $32.00 price objective on shares of Star Bulk Carriers in a research report on Friday, May 22nd. Zacks Research downgraded Star Bulk Carriers from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 22nd. Weiss Ratings raised Star Bulk Carriers from a "hold (c)" rating to a "buy (b-)" rating in a report on Tuesday, August 11th. Finally, Jefferies Financial Group upped their target price on Star Bulk Carriers from $29.00 to $31.00 and gave the stock a "buy" rating in a research note on Thursday, May 28th. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, Star Bulk Carriers has an average rating of "Moderate Buy" and an average target price of $31.50.

Star Bulk Carriers Price Performance

The stock's 50-day moving average price is $26.82 and its 200 day moving average price is $25.42. The firm has a market capitalization of $3.38 billion, a price-to-earnings ratio of 11.68 and a beta of 0.72. The company has a quick ratio of 1.74, a current ratio of 1.91 and a debt-to-equity ratio of 0.32.

Star Bulk Carriers Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st will be issued a $0.90 dividend. This represents a $3.60 dividend on an annualized basis and a yield of 12.1%. The ex-dividend date is Friday, August 21st. This is a positive change from Star Bulk Carriers's previous quarterly dividend of $0.50. Star Bulk Carriers's payout ratio is currently 141.18%.

Insider Buying and Selling

In other Star Bulk Carriers news, Director Nikolaos Karellis sold 20,000 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $26.96, for a total value of $539,200.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, COO Nikolaos Reskos sold 30,000 shares of the business's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $27.29, for a total value of $818,700.00. Following the transaction, the chief operating officer owned 367,775 shares in the company, valued at approximately $10,036,579.75. This represents a 7.54% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 75,000 shares of company stock worth $2,058,295 over the last three months. Corporate insiders own 0.90% of the company's stock.

Hedge Funds Weigh In On Star Bulk Carriers

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Triumph Capital Management acquired a new stake in shares of Star Bulk Carriers in the 3rd quarter worth $26,000. Rhumbline Advisers boosted its position in shares of Star Bulk Carriers by 141.7% during the 3rd quarter. Rhumbline Advisers now owns 1,743 shares of the shipping company's stock valued at $32,000 after acquiring an additional 1,022 shares during the last quarter. Sunbelt Securities Inc. acquired a new position in shares of Star Bulk Carriers during the 3rd quarter valued at about $33,000. Morse Asset Management Inc purchased a new stake in shares of Star Bulk Carriers in the third quarter valued at about $37,000. Finally, Leonteq Securities AG purchased a new stake in shares of Star Bulk Carriers in the fourth quarter valued at about $38,000. Institutional investors and hedge funds own 33.91% of the company's stock.

About Star Bulk Carriers

Star Bulk Carriers Corp is a global shipping company engaged in the ocean transport of dry bulk commodities. The company owns and operates a diversified fleet of bulk carriers, including Handymax, Supramax, Panamax and Capesize vessels. Its ships are designed to carry a broad range of cargoes, such as iron ore, coal, grain, bauxite and phosphate, catering to industrial and agricultural customers worldwide.

The company's vessels operate on major trade routes across the Atlantic, Pacific and Indian Oceans, connecting producers and consumers in Asia, Europe, North and South America.

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