Star Bulk Carriers (SBLK) Is Strong On High Volume Today - TheStreet

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Star Bulk Carriers

(

SBLK

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Star Bulk Carriers as such a stock due to the following factors:

  • SBLK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.5 million.
  • SBLK has traded 76,025 shares today.
  • SBLK is trading at 3.97 times the normal volume for the stock at this time of day.
  • SBLK is trading at a new high 4.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on SBLK:

Star Bulk Carriers Corp., a shipping company, provides seaborne transportation solutions in the dry bulk sector worldwide. Its vessels transport various dry bulk commodities, including coal, iron ore, grains, and minor bulks, as well as bauxite, phosphate, fertilizers, and steel products. SBLK has a PE ratio of 77.5. Currently there are 3 analysts that rate Star Bulk Carriers a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Star Bulk Carriers has been 381,000 shares per day over the past 30 days. Star Bulk Carriers has a market cap of $297.3 million and is part of the services sector and transportation industry. The stock has a beta of 2.08 and a short float of 7.3% with 3.55 days to cover. Shares are down 21.9% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Star Bulk Carriers as a

sell

. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Marine industry. The net income has significantly decreased by 471.2% when compared to the same quarter one year ago, falling from $0.81 million to -$2.99 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Marine industry and the overall market, STAR BULK CARRIERS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • 43.80% is the gross profit margin for STAR BULK CARRIERS CORP which we consider to be strong. Regardless of SBLK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SBLK's net profit margin of -12.09% significantly underperformed when compared to the industry average.
  • SBLK's debt-to-equity ratio of 0.96 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.99 is weak.
  • STAR BULK CARRIERS CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, STAR BULK CARRIERS CORP turned its bottom line around by earning $0.35 versus -$58.31 in the prior year. This year, the market expects an improvement in earnings ($0.47 versus $0.35).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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