Star Bulk Carriers (NASDAQ:SBLK) Shares Gap Down Following Weak Earnings

Shares of Star Bulk Carriers Corp. (NASDAQ:SBLK) gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $16.39, but opened at $15.58. Star Bulk Carriers shares last traded at $15.29, with a volume of 1,512,476 shares traded.

The shipping company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.42 by ($0.08). Star Bulk Carriers had a return on equity of 14.82% and a net margin of 24.75%. The business had revenue of $308.92 million during the quarter, compared to the consensus estimate of $230.91 million.

Star Bulk Carriers Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 18th. Investors of record on Tuesday, March 4th will be given a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a yield of 2.41%. The ex-dividend date of this dividend is Tuesday, March 4th. Star Bulk Carriers’s payout ratio is 83.62%.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on SBLK. Stifel Nicolaus lowered Star Bulk Carriers from a “buy” rating to a “hold” rating and decreased their target price for the company from $30.00 to $21.00 in a research report on Wednesday, October 23rd. DNB Markets upgraded Star Bulk Carriers from a “sell” rating to a “hold” rating and lifted their price target for the company from $19.30 to $20.20 in a research note on Thursday, November 21st. StockNews.com downgraded Star Bulk Carriers from a “buy” rating to a “hold” rating in a research note on Thursday, January 23rd. Finally, Jefferies Financial Group cut their price target on Star Bulk Carriers from $22.00 to $21.00 and set a “buy” rating for the company in a research note on Wednesday. Three equities research analysts have rated the stock with a hold rating and two have given a buy rating to the stock. Based on data from MarketBeat.com, Star Bulk Carriers currently has an average rating of “Hold” and an average target price of $22.05.

Hedge Funds Weigh In On Star Bulk Carriers

Hedge funds and other institutional investors have recently modified their holdings of the business. Bank Julius Baer & Co. Ltd Zurich purchased a new position in shares of Star Bulk Carriers in the 4th quarter worth approximately $28,000. Parkside Financial Bank & Trust purchased a new position in shares of Star Bulk Carriers in the 4th quarter worth approximately $30,000. Blue Trust Inc. boosted its stake in shares of Star Bulk Carriers by 190.5% in the 3rd quarter. Blue Trust Inc. now owns 2,025 shares of the shipping company’s stock worth $49,000 after buying an additional 1,328 shares during the last quarter. Capital Analysts LLC boosted its stake in shares of Star Bulk Carriers by 215.9% in the 4th quarter. Capital Analysts LLC now owns 2,284 shares of the shipping company’s stock worth $34,000 after buying an additional 1,561 shares during the last quarter. Finally, Quarry LP boosted its stake in shares of Star Bulk Carriers by 39.8% in the 3rd quarter. Quarry LP now owns 2,365 shares of the shipping company’s stock worth $56,000 after buying an additional 673 shares during the last quarter. Hedge funds and other institutional investors own 33.91% of the company’s stock.

Star Bulk Carriers Price Performance

The business has a 50 day moving average price of $15.18 and a two-hundred day moving average price of $18.52. The stock has a market cap of $1.26 billion, a PE ratio of 5.05 and a beta of 0.95. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.50 and a current ratio of 1.69.

About Star Bulk Carriers

Star Bulk Carriers Corp., a shipping company, engages in the ocean transportation of dry bulk cargoes worldwide. Its vessels transport a range of bulk commodities, including iron ores, minerals and grains, bauxite, fertilizers, and steel products. As of December 31, 2023, the company owned a fleet of 116 dry bulk vessels with combined carrying capacity of 13.1 million deadweight tonnage (dwt) consisting of Newcastlemax, Capesize, Post Panamax, Kamsarmax, Panamax, Ultramax, and Supramax vessels with carrying capacities between 53,489 dwt and 209,537 dwt.