Star Bulk Carriers Corp. (SBLK) has announced two separate at-the-market equity offerings of $75 million each with Deutsche Bank Securities and Jefferies LLC. The aggregate value of the sale of common shares under both offerings combined is $150 million. Shares of the global dry bulk shipping company fell 7% to close at $21.35 on July 1. (See Star Bulk Carriers stock chart on TipRanks)
As per the terms of the agreements, the company may offer and sell its common shares at any time, and from time to time through the Sales Agents (Deutsche Bank Securities and Jefferies LLC), as agent or principal. However, the company does not intend to start sales under either of the two offerings immediately.
The company expects to utilize the proceeds from the offerings towards capital expenditures, working capital, debt repayment, funding for vessels, asset or share acquisitions, general corporate purposes, or a combination thereof.
Jefferies analyst Randy Giveans reiterated a Buy rating on the stock with a price target of $28, implying 31.15% upside potential from current levels.
Giveans expects SBLK to report earnings of $0.36 per share in the second quarter of 2021.
Based on 6 unanimous Buys, the stock has a Strong Buy consensus rating. The average Star Bulk Carriers price target of $30.60 implies 43.3% upside potential. Shares have gained 228% over the past year.
SBLK scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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