Diana Shipping Inc. (DSX) provides globally shipping transportation solutions via its possession and bareboat charter-in of dry bulk vessels. The international shipping and transportation market in 2019 was valued at $8.70 billion, with the projection to reach $12.08 billion through 2027, recording a 4.3%CAGR for the forecasted period of 2020-2027. DSX belongs to the marine industry and is ranked 18th spot among a total of 24 competitors.
DSX: Recent Announcement
On April 13, DSX updated on its entry into a time charter agreement with C Transport Maritime Ltd., via a separate wholly-owned subsidiary, for one of its Newcastlemax dry bulk vessels, the m/v Philadelphia. A per-day gross charter rate of $26 thousand was implied, excluding a 5% commission paid to third parties, for a time frame until February 1, 2024.
For the full fiscal year of 2021, DSX recorded total revenue of $214 million, improving the figures by 26% from the past year (2020). The company’s per-share earnings also noted a 143.3% gain to remain at $0.68. For FY22, the revenue and EPS forecasts are $280 million and $1.34 respectively.
Comparison with Peers
While comparing DSX stock with its peers, one thing becomes clear. Almost all the shipping companies stand in a much better position than they were one year ago. Some of the competitors of the company include GSL, CMRE, GNK, EDRY, DAC, and SBLK, all of which improved their stock rankings over the year. While OP’s stock price declined over the year. The pandemic has pushed the shipping industry to increase its prices.
Insider Transaction and Analyst Ratings
On February 25, the renowned analyst firm Jefferies rated the DSX stock as hold, maintaining its previous rating, and raised the target price from $4.50 to $5.0. The total number of outstanding shares of the company is 86.1 million and up to 30% of all the shares are held by insiders, while 20.4% of shares are owned by different institutional investors.
As the company’s earnings will grow at an average of 16% in the coming three years and it is currently profitable, there is not much threat. But unstable dividend track record and no coverage of debt by the operating cash flow may pose serious risks for DSX.
DSX stock is in much better condition compared to the past but still, minor threats are posed. The investors should do proper research before investing in the company as the analysts rated it a hold. Still, there is a lot of room for investment in the company by observing its past performance.