Star Bulk Carriers (NASDAQ:SBLK) Sets New 52-Week High - Here's Why

Key Points

• Star Bulk Carriers (NASDAQ:SBLK) hit a new 52-week high, climbing as high as $28.28 after a strong recent rally in the stock.
• The company posted a solid first quarter, with EPS of $0.62 beating estimates and net profit of $58.5 million, while also topping expectations on earnings overall.
• Star Bulk increased its quarterly dividend to $0.50 per share from $0.37, boosting the annualized payout to $2.00 and implying a 7.4% yield.

Star Bulk Carriers Corp. (NASDAQ:SBLK - Get Free Report) reached a new 52-week high on Friday . The stock traded as high as $28.28 and last traded at $26.92, with a volume of 3212281 shares. The stock had previously closed at $26.69.

Star Bulk Carriers News Roundup

Here are the key news stories impacting Star Bulk Carriers this week:

• Positive Sentiment: Star Bulk Carriers beat Q1 earnings expectations and posted a net profit of $58.5 million, signaling solid operating performance in the dry bulk shipping market. Article Title
• Positive Sentiment: The company declared a quarterly dividend of $0.50 per share, up from $0.37 previously, reinforcing its shareholder-return story and supporting the stock’s yield appeal. Article Title
• Positive Sentiment: Shares also benefited from the broader message that SBLK delivered an earnings and revenue surprise versus estimates, which can attract momentum buyers. Article Title
• Neutral Sentiment: A COO stock sale was disclosed, but it was made under a pre-arranged 10b5-1 trading plan, making it less likely to be viewed as a negative signal. Article Title
• Neutral Sentiment: Some investors may also be weighing the recent run-up in SBLK’s share price, which could temper enthusiasm if they view valuation as stretched after the rally. Article Title

Wall Street Analysts Forecast Growth

Several analysts have recently commented on SBLK shares. Zacks Research raised Star Bulk Carriers from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, April 22nd. Wall Street Zen raised Star Bulk Carriers from a "buy" rating to a "strong-buy" rating in a research note on Saturday, April 18th. Jefferies Financial Group initiated coverage on Star Bulk Carriers in a report on Friday, April 24th. They issued a "buy" rating and a $29.00 target price on the stock. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Star Bulk Carriers in a report on Friday, March 27th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, Star Bulk Carriers currently has a consensus rating of "Buy" and a consensus target price of $29.00.

Star Bulk Carriers Stock Up 0.9%

The firm has a market cap of $3.05 billion, a P/E ratio of 21.54 and a beta of 0.71. The business's fifty day moving average price is $24.47 and its two-hundred day moving average price is $22.24. The company has a current ratio of 1.78, a quick ratio of 1.65 and a debt-to-equity ratio of 0.34.

Star Bulk Carriers (NASDAQ:SBLK - Get Free Report) last released its quarterly earnings results on Wednesday, February 25th. The shipping company reported $0.62 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.52 by $0.10. The company had revenue of $230.79 million during the quarter, compared to analysts' expectations of $250.51 million. Star Bulk Carriers had a net margin of 13.01% and a return on equity of 6.82%. As a group, equities research analysts anticipate that Star Bulk Carriers Corp. will post 3.85 EPS for the current year.

Star Bulk Carriers Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 22nd. Stockholders of record on Friday, June 12th will be issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 7.4%. The ex-dividend date of this dividend is Friday, June 12th. This is a boost from Star Bulk Carriers's previous quarterly dividend of $0.37. Star Bulk Carriers's payout ratio is currently 202.74%.

Insider Transactions at Star Bulk Carriers

In related news, COO Nikolaos Reskos sold 33,103 shares of the stock in a transaction dated 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 owned 407,775 shares in the company, valued at $10,716,327. This trade represents a 7.51% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 43,189 shares of company stock worth $1,122,645 in the last three months. Corporate insiders own 0.90% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Alliancebernstein L.P. boosted its position in Star Bulk Carriers by 44.6% in the 3rd quarter. Alliancebernstein L.P. now owns 5,446,191 shares of the shipping company's stock valued at $101,245,000 after buying an additional 1,681,036 shares during the last quarter. Mirabella Financial Services LLP acquired a new position in shares of Star Bulk Carriers during the third quarter valued at $73,967,000. Ameriprise Financial Inc. boosted its holdings in Star Bulk Carriers by 33.2% in the third quarter. Ameriprise Financial Inc. now owns 2,166,892 shares of the shipping company's stock valued at $40,283,000 after acquiring an additional 539,567 shares during the last quarter. Renaissance Technologies LLC boosted its holdings in Star Bulk Carriers by 13.0% in the first quarter. Renaissance Technologies LLC now owns 2,067,637 shares of the shipping company's stock valued at $47,494,000 after acquiring an additional 237,248 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in Star Bulk Carriers by 59.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,298,436 shares of the shipping company's stock worth $20,204,000 after purchasing an additional 485,436 shares during the period. 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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