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Safe Bulkers Inc (NYSE:SB) Stock Continues to Trend Lower After Reporting Earnings

Ash K , , , ,

Global marine dry bulk transportation services provider Safe Bulkers Inc (NYSE:SB) has had a tough time in the markets in the past few days and the trend was not reversed on Wednesday.

Market Stats

On Wednesday, SB stock  moved down 5% to $3.73 with more than 1.65 million, compared to its average volume of 727k shares. The stock has moved within a range of $3.5700 – 3.7200 after opening the trade at $3.70.

Earnings Review

The stock declined by as much as 5% yesterday and that took its decline for the past week to as much as 16%. While the decline may be alarming it should be noted that there was no news about the company yesterday and the decline may be actually linked to the announcement of the company’s unaudited financial results earlier on this month on November 3.

The results announced by the company were for the three month and nine month period both of which ended on September 30, 2021. In the third quarter, the company managed to bring in revenues of as much as $92.5 million and the revenues for the nine month period came in at $236.6 million.

It should be noted that the revenues generated in the third quarter were higher than the $51.9 million that had been generated by the company in the prior year period. It was also higher than the $81.6 million that the company generated in the previous quarter.

Key Quote

Dr. Loukas Barmparis, President of the Company, said: “We are happy to report that our profitability has increased during the third quarter 2021 compared to the previous quarter. As we move to year end we are gradually nearing our targeted leverage, maintaining a healthy liquidity position and making significant progress on our fleet renewal strategy. We have also begun contracting period time charters to provide better visibility to our future cash flows.”

Traders Corner

SB stock is trading below the 20-Day and 50-Day Moving averages of $4.32 and $4.59 respectively. However, the stock is trading above the 200-Day moving average of $3.58. The stock is down 16% in the past 6-month.