Diana Shipping Stock Rallies On Tender Offer To Purchase 15M Shares At $2 Apiece: Retail Sentiment Hits 1-Year High
By Stocktwits Inc | First Published Dec 2, 2024, 10:42 PM ISTDiana Shipping also announced that it has entered into a time charter contract with Bunge SA, Geneva, for one of its Ultramax dry bulk vessels.
Shares of Diana Shipping Inc. (DSX), a company specializing in the ownership and bareboat charter-in of dry bulk vessels, rose over 8% on Monday after the firm announced it is commencing a tender offer to purchase up to 15 million shares, or about 12%, of its outstanding common stock.
The purchase will be done using funds available from cash and cash equivalents at a price of $2 per share. Shares of the company closed at $1.78 on Friday and are currently trading at $1.94 as of 11:16 a.m. ET.
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“The board of directors determined that it is in the company’s best interest to repurchase shares at this time given the company’s cash position and stock price,” the firm stated.
Diana Shipping also announced that it has entered into a time charter contract with Bunge SA, Geneva, for one of its Ultramax dry bulk vessels.
The firm said the gross charter rate stood at $13,300 per day, minus a 5% commission paid to third parties for a period of minimum 10 months to about 12 months. The charter is expected to commence on Dec. 6, 2024, it added.
The employment of the dry bulk vessel “DSI Aquarius” is expected to generate approximately $3.99 million of gross revenue for the minimum scheduled period of the time charter.
Following the developments, retail sentiment on Stocktwits jumped into the ‘extremely bullish’ territory (93/100) from ‘bearish’ a day ago, hitting a one-year high. The move was accompanied by high retail chatter.
DSX recently reported its third-quarter results, with revenues falling over 7% year-over-year (YoY) to $57.49 million. Net income attributable to common stockholders declined 62% YoY to $2.27 million.
Meanwhile, shares of DSX have lost over 34% since the beginning of the year. Despite Monday’s surge, they are currently trading near their four-year lows.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
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