Friday, October 08, 2021
Eagle Bulk Shipping (EGLE)
Exit of Second Largest Shareholder Creates Opportunity
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.
No surprise that second largest shareholder sold. Bad news, good news, who knows? Strong stock price performance likely triggered added selling by the second largest shareholder. Even though the stock has been under pressure, the sale of the remaining 1.1 million share position at $48.50/share on October 5th is a positive event due to reduced overhang, higher public float and higher trading liquidity.
Positive management call discussed global refinancing, variable dividend and buy backs. Catalyst for new capital allocation strategy was the global refinancing of all debt with a new five-year term $300 million loan and a $100 million revolver. The refinancing sets the stage for variable dividend policy equal to at least of 30% of the previous quarter’s net income to start. The first dividend based …
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.
