Movers and SHAKERS
Eagle Bulk Shipping (EGLE)
Firm Market Drives Price Target Higher Again
Eagle Bulk Shipping Inc. is a US-based drybulk owner-operator focused on the Supramax/Ultramax mid-size asset class, which ranges from 50,000 and 65,000 deadweight tons in size; these vessels are equipped with onboard cranes allowing for the self-loading and unloading of cargoes, a feature which distinguishes them from the larger classes of drybulk vessels and provides for greatly enhanced flexibility and versatility- both with respect to cargo diversity and port accessibility. The Company transports a broad range of major and minor bulk cargoes around the world, including coal, grain, ore, pet coke, cement, and fertilizer. Eagle operates out of three offices, Stamford (headquarters), Singapore, and Hamburg, and performs all aspects of vessel management in-house including: commercial, operational, technical, and strategic.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
ATM program filing seems well timed. After seeing the stock more than double this year, the move to establish an ATM program and raise up to $50 million of equity seems logical. We would not be surprised to see the major shareholders scale back too. Currently, more than 60% of the outstanding shares are owned by two investment funds and any selling would expand the public market float and improve trading liquidity.
Strong currency adds flexibility. The ATM filing highlighted that Ultramax acquisitions as a possible use of proceeds. While we don’t like using net asset value (NAV) in a normal/rising market, Ultramax acquisitions funded with equity would have a favorable impact since the stock is trading at a premium to our YE2021 NAV estimate ...
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.