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EGLE
Jun 23, 2023 20:54:30 GMT
Post by anitya on Jun 23, 2023 20:54:30 GMT
uncleharley , richardsok , Thought you might be interested in this shipping stock. $660M market cap. Current div policy is 30% of net income. Current market price $48, div yield per yahoo approx $10%. (Edit: Yahoo div info does not incl recent div cuts.) The company was caught off guard another company (DAC) in the shipping business acquiring its stock in the open market. DAC raised its stake to 11.33% yesterday and as such it had to file and disclose its ownership. That may have forced EGLE to buyback 30% of its shares from Oaktree capital (remember Howard Marks?) today at $58 per share and the company says the net asset value of the company is $69 ($58+$11). Ironically, this repurchase increased DAC's ownership of EGLE to nearly 16%. Simultaneous with the repurchase, EGLE adopted a poison pill against any potential hostile take over from DAC. finance.yahoo.com/news/eagle-bulk-shipping-inc-purchases-212500098.htmlIt surprises me that neither DAC nor EGLE's shares moved much on that news. (DAC must have been accumulating EGLE shares very slowly / stealthily because there is no spike in volume to show their activity.)
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EGLE
Jun 23, 2023 22:50:30 GMT
Post by richardsok on Jun 23, 2023 22:50:30 GMT
Hm. I'm seeing contradictions, ani. TipRanks: 7/10. Lot of insider selling, despite a PE of 4 and a big cash hoard ($11/sh) (Did they just announce a new dividend policy? Last two quarterly dividends were VERY sharply reduced. Lightly covered by analysts. Projected EPS to erode next year. Chart's a bit volatile for my liking. I might dig some more this weekend. Thanks anyway.
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EGLE
Jun 23, 2023 23:56:33 GMT
Post by anitya on Jun 23, 2023 23:56:33 GMT
Thanks richardsok for checking. You are right, the company has slashed their dividends three quarters in a row: from $2.2 to $1.8 to $0.6 to $0.1 (5/5/2023). Yahoo says Forward Dividend & Yield but all it did was add the last four dividends and divide by price to come with the 10% div yield. If you remember, I had warned about a lot of shipping companies cutting dividends in 2023. I should have taken my own advice and cross checked Yahoo info. Yes, they may get acquired at $58 or $70+ by DAC but that outcome is not certain and EGLE too is experiencing the shipping woes. I think the industry suffers from over-capacity - overzealous expansion based on the 2020-2022 shipping rates. This industry is likely the 2023 version of the pre-2016 shale producers! I do not think this is worth while to spend time on. P.S.: Fidelity rates EGLE highly for Valuation, Quality, Financial Health but low on Stability of Growth of earnings and cash flows.
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