Star Bulk Carriers (NASDAQ:SBLK) Reaches New 1-Year High Following Dividend Announcement

Key Points

• Star Bulk Carriers shares reached a new 52-week high of $29.50 after the company announced a quarterly dividend of $0.90 per share, up from $0.50 previously. The annualized dividend is $3.60, implying a 12.5% yield.
• Analysts maintain a generally positive outlook, with an average rating of “Moderate Buy” and an average price target of $31.50; recent targets from Deutsche Bank and Jefferies were $32 and $31, respectively.
• Company insiders sold 103,103 shares worth approximately $2.78 million over the past three months, while institutional investors own 33.91% of the stock.

Star Bulk Carriers Corp. (NASDAQ:SBLK - Get Free Report) shares hit a new 52-week high during trading on Thursday after the company announced a dividend. The company traded as high as $29.50 and last traded at $28.6760, with a volume of 276259 shares changing hands. The stock had previously closed at $27.96.The newly announced dividend which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be given a dividend of $0.90 per share. The ex-dividend date of this dividend is Friday, August 21st. This is a positive change from Star Bulk Carriers's previous quarterly dividend of $0.50. This represents a $3.60 dividend on an annualized basis and a yield of 12.5%. Star Bulk Carriers's dividend payout ratio is currently 160.00%.

Analysts Set New Price Targets

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

Star Bulk Carriers Stock Up 2.7%

The firm has a market capitalization of $3.26 billion, a price-to-earnings ratio of 22.91 and a beta of 0.72. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.73 and a quick ratio of 1.55. The business has a fifty day moving average price of $26.66 and a two-hundred day moving average price of $25.05.

Insider Buying and Selling

In other Star Bulk Carriers news, COO Nikolaos Reskos sold 33,103 shares of Star Bulk Carriers stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $26.28, for a total transaction of $869,946.84. Following the completion of the sale, the chief operating officer directly owned 407,775 shares in the company, valued at approximately $10,716,327. The trade was a 7.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nikolaos Karellis sold 20,000 shares of the company's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $26.96, for a total transaction of $539,200.00. The SEC filing for this sale provides additional information. Insiders have sold a total of 103,103 shares of company stock valued at $2,780,742 over the last three months. 0.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Star Bulk Carriers

A number of institutional investors have recently modified their holdings of the stock. Triumph Capital Management purchased a new stake in shares of Star Bulk Carriers in the third quarter worth about $26,000. Rhumbline Advisers raised its position in Star Bulk Carriers by 141.7% during the third 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 in the last quarter. Sunbelt Securities Inc. acquired a new position in Star Bulk Carriers in the third quarter valued at approximately $33,000. Morse Asset Management Inc acquired a new position in Star Bulk Carriers in the third quarter valued at approximately $37,000. Finally, Leonteq Securities AG purchased a new stake in Star Bulk Carriers in the 4th quarter worth approximately $38,000. Hedge funds and other institutional investors own 33.91% of the company's stock.

Star Bulk Carriers Company Profile

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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