Is Safe Bulkers Inc. (SB) A Risky Investment?


Safe Bulkers Inc. (NYSE:SB) finished Friday with a subtraction of $0.0 to close at $2.91, a downside of 0.00 percent. An average of 539,760 shares of common stock have been traded in the last five days. There was a gain of $0.03 in the past week, and it reached a new high 15 times over the past 12 months. The last 20 days have seen an average of 840,080 shares traded, while the 50-day average volume stands at 883,026.

SB stock has increased by 2.11% in the last month. The company shares reached their 1-month lowest point of $2.59 on 12/07/22. With the stock rallying to its 52-week high on 06/07/22, shares of the company touched a low of $2.35 and a high of $5.12 in 52 weeks. It has reached a new high 14 times so far this year and lost -22.81% or -$0.86 in price. In spite of this, the price is down -43.16% from the 52-week high.

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Valuation Metrics

Safe Bulkers Inc. (SB) has a trailing price-to-earnings (P/E) ratio of 1.83. The stock’s beta is 0.91. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.95, the price-to-book (PB) ratio at 0.47, and the price-to-cash flow ratio at 1.55.

The company has a payout ratio of 12.60%. The company’s most recent quarterly dividend payment was $0.05 a share, without any change from last year. Its latest increase dividend $0.04 reported on Thursday March 10 2022.

Financial Health

Further, the company has a long term debt to equity ratio of 0.55 and a total debt to equity ratio of 0.59 for the quarter ending June 29. Its gross profit as reported stood at $247.23 million compared to revenue of $329.03 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Safe Bulkers Inc.’s return on assets was 16.40%.

Earnings Surprise

For the three-month period that ended June 29, Safe Bulkers Inc. had $1.08 million in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $163.56 million in the quarter, while revenues were grew 115.47%. The analyst consensus anticipated Safe Bulkers Inc.’s latest quarter earnings to come in at $0.31 per share, but it turned out to be $0.4, a 29.00% surprise. For the quarter, EBITDA amounted to $54.09 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Safe Bulkers Inc. (SB) price momentum. RSI 9-day as of the close on 30 December was 54.09%, suggesting the stock is Neutral, with historical volatility in this time frame at 57.88%.

As of today, SB’s price is $2.90 +1.04% or $0.03 from its 5-day moving average. SB is currently trading +5.43% higher than its 20-day SMA and -21.77% lower than its 100-day SMA. However, the stock’s current price level is +5.82% above the SMA50 and -37.95% below the SMA200.

The stochastic %K and %D were 44.48% and 48.35%, respectively, and the average true range (ATR) was 0.13. With the 14-day stochastic at 47.92% and the average true range at 0.13, the RSI (14) stands at 53.41%. The stock has reached -0.02 on the 9-day MACD Oscillator while the 14-day reading was at 0.02.

Analyst Ratings

Jefferies downgraded Safe Bulkers Inc. (NYSE: SB) to a a Hold rating in its most recent analyst report. Previously, the stock was rated as a Buy.


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