Star Bulk Carriers (NASDAQ:SBLK) Shares Gap Down After Earnings Miss

Shares of Star Bulk Carriers Corp. (NASDAQ:SBLK - Get Free Report) gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. 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 changing hands.

The shipping company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.42 by ($0.08). The business had revenue of $308.92 million during the quarter, compared to analysts' expectations of $230.91 million. Star Bulk Carriers had a return on equity of 12.48% and a net margin of 24.08%.

Star Bulk Carriers Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 18th. Stockholders of record on Tuesday, March 4th will be issued a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a dividend yield of 2.35%. The ex-dividend date of this dividend is Tuesday, March 4th. Star Bulk Carriers's dividend payout ratio is presently 83.62%.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Jefferies Financial Group lowered their target price on shares of Star Bulk Carriers from $22.00 to $21.00 and set a "buy" rating for the company in a research note on Wednesday. DNB Markets raised shares of Star Bulk Carriers from a "sell" rating to a "hold" rating and increased their price objective for the stock from $19.30 to $20.20 in a research report on Thursday, November 21st. Finally, StockNews.com lowered Star Bulk Carriers from a "buy" rating to a "hold" rating in a research report on Thursday, January 23rd. Three equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the stock. According to data from MarketBeat, Star Bulk Carriers currently has a consensus rating of "Hold" and an average target price of $22.05.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in SBLK. 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 valued at $49,000 after buying an additional 1,328 shares during the period. Private Advisor Group LLC lifted its stake in Star Bulk Carriers by 22.1% in the third quarter. Private Advisor Group LLC now owns 11,882 shares of the shipping company's stock worth $281,000 after acquiring an additional 2,152 shares during the last quarter. International Assets Investment Management LLC purchased a new position in Star Bulk Carriers in the third quarter worth approximately $298,000. Mraz Amerine & Associates Inc. purchased a new position in Star Bulk Carriers in the third quarter worth approximately $1,779,000. Finally, J.W. Cole Advisors Inc. purchased a new stake in shares of Star Bulk Carriers during the 3rd quarter worth $338,000. Hedge funds and other institutional investors own 33.91% of the company's stock.

Star Bulk Carriers Trading Down 4.1 %

The firm has a market capitalization of $1.29 billion, a PE ratio of 5.35 and a beta of 0.95. The company's 50-day moving average price is $15.18 and its 200-day moving average price is $18.48. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.50 and a current ratio of 1.65.

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.