Star Bulk Carriers Corp. (SBLK) Stock: A Good Pick In The Service Sector Space?


Star Bulk Carriers Corp. (SBLK) is trending down in the market in today’s trading session. The company, one that is focused on the service industry, is currently priced at $6.58 after heading down -4.91% so far in today’s session. When it comes to service companies, there are several aspects that have the potential to cause movement in the market. One of the most common is news. Here are the most recent stories associated with SBLK:

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Mar-21-19 01:57PM Star Bulk Announces Availability of Its 2018 Annual Report on Form 20F
Mar-13-19 01:28PM Leading Company Executives Discuss Current Challenges in Shipping Today IMO 2020 & Beyond and Consolidation, Growth & M&A Panels Capital Links 13th Annual International Shipping Forum Monday, April 1, 2019 in NYC
Mar-11-19 09:00AM 35 Shipping Companies Presenting at Capital Links 13th Annual International Shipping Forum Monday, April 1, 2019 in NYC
Feb-20-19 02:38PM Could The Star Bulk Carriers Corp. (NASDAQ:SBLK) Ownership Structure Tell Us Something Useful?
Feb-15-19 05:01PM Star Bulk Carriers Corp. Acquisition of Own Shares

Nonetheless, any time investors are making a decision to invest, prospective investors should look at much more than news, this is especially the case in the ever highly complex service space. Here’s what’s happing when it comes to Star Bulk Carriers Corp..

Recent Trends From SBLK

While a decline in a single session, like what we’re seeing from Star Bulk Carriers Corp. might cause fear in some investors, a single session move alone should not be the reason for a decision to, or not to, buy a company’s stock. It is generally a good idea to dig into trends experienced by the stock further out than a single session. As it relates to SBLK, below are the returns that investors have experienced:

  • Past 5 Sessions – In the past seven days, SBLK has seen a change in value that amounts to -7.71%.
  • Monthly – The return on investment from Star Bulk Carriers Corp. in the past month has been -16.28%.
  • Past 3 Months – In the last quarter, the stock has generated a return that comes to -26.64%
  • Past 6 Months – Over the last 6 months, investors have seen a performance that equates to -48.67% from the stock.
  • This Year So Far – Since the close of last year SBLK has generated a return on investment of -28.01%.
  • Full Year – Lastly, over the last year, we have seen a change in the amount of -45.98% out of SBLK. In this period of time, the stock has traded at a high of -57.22% and a low price of 1.86%.

Key Ratios

Digging into various ratios associated with a company generally gives traders an understanding of just how risky and/or potentially profitable a an investment option might be. Below are a few of the key ratios to think about when looking at SBLK.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors believe that the stock is headed for declines. Across the sector, strong service sector stocks can carry a lower short ratio. On the other hand, we also tend to see a lot of short squeezes in the sector. Nonetheless, as it relates to Star Bulk Carriers Corp., the stock’s short ratio is 2.61.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Essentially, they measure If a company is able to cover its debts when they mature with only current assets or quick assets. come with great quick and current ratios. In terms of SBLK, the quick and current ratios work out to 1.20 and 1.30 respectively.  

Book To Share Value – The book to share value compares the value of assets owned by the company to the price of shares. In this case, the book to share value ratio works out to 16.41.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the value of the company’s stock. In this case, the cash to share value comes to 2.13.

Smart Money Follows Big Money

An interesting fact that I’ve come to understand so far in my brief time on Earth is that good investors tend to follow the moves made by big money players. Usually, investors that are looking to keep the risk down will keep their eyes on moves made by institutional investors as well as insiders of the company. So, is big money interested when it comes to SBLK? Here’s what’s going on:

Institutions own 59.90% of the company. Institutional interest has moved by 0.83% over the past three months. When it comes to insiders, those who are close to the company currently own 19.80% percent of SBLK shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

How Analysts Feel About Star Bulk Carriers Corp.

While it’s rarely a smart idea to unknowingly follow the thoughts of analysts, it is a good idea to use their thoughts when validating your own thoughts when it comes to making investment decisions in the service sector. Here are the recent moves that we have seen from analysts with regard to SBLK.

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Feb-15-19 Downgrade Morgan Stanley Overweight → Equal-Weight
Mar-01-18 Reiterated Stifel Hold $11 → $12
Mar-28-17 Upgrade Morgan Stanley Underweight → Overweight
Feb-21-17 Upgrade Deutsche Bank Hold → Buy $3.50 → $12
Aug-02-16 Resumed Seaport Global Securities Neutral $4

Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $3.04. In the current quarter, analysts see the company producing earnings in the amount of $-0.03. Over the last 5 years, SBLK has generated revenue in the amount of $56.30% with earnings coming in at 2.90%. On a quarter over quarter basis, earnings have seen movement of -66.10% and revenue has seen movement of 94.40%.

What’s Going On With Share Counts?

Investors seem to have an interest in the amounts of shares both available and outstanding. As far as Star Bulk Carriers Corp., there are currently 96.25M with a float of 90.88M. This means that out of the total of 96.25M shares of SBLK that are out there today, 90.88M are able to trade hands on the public market.

It’s also important to pay attention to the short percentage of the float. Think about it, if a large portion of the float available for trading is sold short, the overall feeling among investors is that the equity is going to take a dive. With regard to SBLK, the percentage of the float that is sold short comes to a total of 1.63%. Most traders believe that a high short percent of the float would be any percentage over 40%. In my research, I’ve seen that anything over 26% is usually a a play that could prove to be very risky.

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