Star Bulk Carriers (NASDAQ:SBLK) Issues Earnings Results, Beats Expectations By $0.21 EPS

Key Points

• Star Bulk Carriers beat earnings expectations, reporting quarterly EPS of $1.17 versus the $0.96 consensus estimate. The company posted a 13.01% net margin and 6.81% return on equity.
• The company increased its quarterly dividend to $0.50, or $2.00 annualized, resulting in a 7.2% yield. Its payout ratio stands at 160%.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and a $31.50 average price target, while insiders sold $2.78 million worth of shares over the past three months.

Star Bulk Carriers (NASDAQ:SBLK - Get Free Report) announced its earnings results on Wednesday. The shipping company reported $1.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.96 by $0.21, Zacks reports. Star Bulk Carriers had a net margin of 13.01% and a return on equity of 6.81%.

Star Bulk Carriers Price Performance

Star Bulk Carriers stock traded down $0.26 during midday trading on Wednesday, reaching $27.96. The company's stock had a trading volume of 880,247 shares, compared to its average volume of 1,213,906. The firm has a market capitalization of $3.17 billion, a PE ratio of 22.37 and a beta of 0.72. Star Bulk Carriers has a fifty-two week low of $16.72 and a fifty-two week high of $29.34. The stock's 50 day simple moving average is $26.66 and its 200 day simple moving average is $25.05. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.55 and a current ratio of 1.73.

Star Bulk Carriers Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 22nd. Stockholders of record on Friday, June 12th were issued a $0.50 dividend. The ex-dividend date of this dividend was Friday, June 12th. This represents a $2.00 annualized dividend and a dividend yield of 7.2%. This is an increase from Star Bulk Carriers's previous quarterly dividend of $0.37. Star Bulk Carriers's payout ratio is 160.00%.

Insider Buying and Selling at Star Bulk Carriers

In other news, COO Nikolaos Reskos sold 5,000 shares of the firm's stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $28.99, for a total transaction of $144,950.00. Following the sale, the chief operating officer owned 405,875 shares in the company, valued at $11,766,316.25. This trade represents a 1.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nikolaos Karellis sold 20,000 shares of the stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $26.96, for a total transaction of $539,200.00. The disclosure for this sale is available in the SEC filing. Insiders sold 103,103 shares of company stock worth $2,780,742 in the last three months. 0.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Star Bulk Carriers

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Public Employees Retirement System of Ohio increased its position in shares of Star Bulk Carriers by 10.3% in the 4th quarter. Public Employees Retirement System of Ohio now owns 4,536 shares of the shipping company's stock worth $87,000 after purchasing an additional 422 shares during the last quarter. Magnetar Financial LLC lifted its stake in Star Bulk Carriers by 3.1% in the fourth quarter. Magnetar Financial LLC now owns 20,001 shares of the shipping company's stock valued at $384,000 after buying an additional 604 shares during the last quarter. BNP Paribas Financial Markets boosted its stake in Star Bulk Carriers by 4.7% during the 2nd quarter. BNP Paribas Financial Markets now owns 13,695 shares of the shipping company's stock valued at $236,000 after purchasing an additional 616 shares during the period. Vident Advisory LLC boosted its position in shares of Star Bulk Carriers by 5.6% during the third quarter. Vident Advisory LLC now owns 16,902 shares of the shipping company's stock worth $314,000 after buying an additional 891 shares during the period. Finally, Commonwealth Equity Services LLC boosted its position in Star Bulk Carriers by 8.6% during the 4th quarter. Commonwealth Equity Services LLC now owns 12,399 shares of the shipping company's stock worth $238,000 after acquiring an additional 983 shares during the period. Hedge funds and other institutional investors own 33.91% of the company's stock.

Analysts Set New Price Targets

Several analysts have recently weighed in on SBLK shares. Wall Street Zen raised shares of Star Bulk Carriers from a "buy" rating to a "strong-buy" rating in a research note on Saturday, April 18th. Weiss Ratings reiterated a "hold (c)" rating on shares of Star Bulk Carriers in a research note on Wednesday, June 24th. Jefferies Financial Group lifted their price objective on shares of Star Bulk Carriers from $29.00 to $31.00 and gave the company a "buy" rating in a report on Thursday, May 28th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $32.00 target price on shares of Star Bulk Carriers in a report on Friday, May 22nd. Finally, Zacks Research lowered Star Bulk Carriers from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 22nd. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $31.50.

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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