Analyst Sees Smooth Sailing Ahead For This Shipping Stock

The shipping stock has shed 26% this quarter already

by Patrick Martin

Published on Nov 8, 2018 at 2:33 PM

At last check, Star Bulk Carriers Corp. (NASDAQ:SBLK) was up 2.2% to trade at $10.69. The shipping stock had a rough October along with the rest of the broader equities market, but amid SBLK's recent struggles, one analyst suggests the stock could be on sale at current levels. More specifically, Deutsche Bank earlier today reiterated its "buy" rating and $17 price target on the shipping stock.

SBLK shares touched an annual high of $15.38 on Oct. 1, but succumbed to those nasty October stock market headwinds. Despite the rally today, the equity is still on track for its worst week since April 17 and has shed 26% this quarter. Nevertheless, SBLK shares are a ways off their Nov. 15 low of $8.62, and have a 14-day Relative Strength Index (RSI) of 26 that indicates they are are firmly into oversold waters.

Daily Stock Chart SBLK

Deutsche Bank's optimism is shared throughout the analyst community. All six of the brokerages covering SBLK rate it a "strong buy," while the average 12-month price target of $16.71 is a 57% premium to its current perch.

Options traders are piling on today, despite limited absolute volume. At last check, nearly 2,400 calls have been traded, seven times the average intraday volume and pacing for the 98th percentile of its annual range. Leading the charge is the February 2019 12.50-strike call, where it looks like new positions are being opened. 

START YOUR DAY SMARTER.

Get Schaeffer's pre-market news bulletin every morning before the bell rings.
It's free to sign up.


Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Become a Master of Moving Averages
How you can transform lagging indicators into leading indicators.
Celebrity Lawyer Takes Nike Stock on Wild Ride
Plus, Google is toying with change that could impact Trade Desk and Criteo
KBR Stock Falls Despite Huge Military Contract
Some options traders have been betting on upside for KBR
Become a Master of Moving Averages
How you can transform lagging indicators into leading indicators.