Seanergy Maritime Holdings Corp (SHIP) Moves 7.2% Higher: Will This Strength Last?
Seanergy Maritime Holdings Corp (SHIP) shares rallied 7.2% in the last trading session to close at $5.21. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 10% gain over the past four weeks.
The uptick was owing to updates pertaining to share repurchase and a bareboat charter agreement inked for a dry bulk vessel. In a shareholder-friendly move, SHIP repurchased approximately 2% of its outstanding shares under its previously announced stock buyback program. The buyback program was conducted at an average price of $4.35 per share, representing an 11.2% discount from the closing price of Jul 5.
Additionally, Seanergy inked a 12-month bareboat charter agreement with an unnamed Japanese third party for a Newcastlemax bulker vessel of 207,855 Deadweight tonnage or dwt. Under the terms of the bareboat charter agreement, Seanergy has made a down payment of $3.5 million and will pay an additional $3.5 million upon delivery of the vessel. The company will also pay a daily bareboat rate of $9,000 throughout the 12-month charter period. The estimated delivery of the vessel is scheduled between Aug and Dec. The agreement includes an option to purchase the vessel at the end of the 12-month charter period for $20.2 million. The decision by Seanergy’s management to enter into a 12-month charter agreement highlights its expansion-oriented approach.
This company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of -70%. Revenues are expected to be $26.39 million, down 19.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Seanergy Maritime Holdings Corp, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SHIP going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Seanergy Maritime Holdings Corp is a member of the Zacks Transportation - Shipping industry. One other stock in the same industry, Euroseas Ltd. (ESEA), finished the last trading session 0.6% lower at $21.84. ESEA has returned -1.1% over the past month.
Euroseas Ltd.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.80. Compared to the company's year-ago EPS, this represents a change of -55.9%. Euroseas Ltd. currently boasts a Zacks Rank of #5 (Strong Sell).
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