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High-Yield Stock Safe Bulkers Hits New 52-Week Low (SB)

Safe Bulkers (NYSE: SB) traded yesterday at a new 52-week low of $3.23. This new low was reached on above average trading volumes of 2.4 million shares, while the average 30-day volume is about 215,000 shares.

Safe Bulkers is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly grain, iron ore and coal. The company has a fleet of panamax, kamsarmax and post-panama x class vehicles.

Safe Bulkers reported earnings on November 14 and beat expectations on revenues and beat expectations on earnings per share. Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted. Margins dropped across the board.

Safe Bulkers recorded revenue of $46.8 million. The four analysts polled by S&P Capital IQ looked for revenue of $45.7 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter’s $42.5 million. EPS came in at $0.30. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.29 per share. GAAP EPS of $0.27 for Q3 were 3.6% lower than the prior-year quarter’s $0.28 per share. Next quarter’s average estimate for revenue is $47.9 million. On the bottom line, the average EPS estimate is $0.31. Next year’s average estimate for revenue is $182.5 million. The average EPS estimate is $1.12.

Safe Bulkers has been named as a Top 25 dividend stock, according the most recent Dividend Channel “DividendRank” report. The report noted that among the coverage universe, Safe Bulkers shares displayed both attractive valuation metrics and strong profitability metrics. For example, the recent Safe Bulkers share price of $4.51 represents a price-to-book ratio of 0.9 and an annual dividend yield of 13.31% — by comparison, the average company in Dividend Channel’s coverage universe yields 4.0% and trades at a price-to-book ratio of 1.9. The report also cited the strong quarterly dividend history at Safe Bulkers. The annualized dividend paid by Safe Bulkers is $0.60/share, currently paid in quarterly installments.

There is a potential upside of 157% for shares of Safe Bulkers based on a current price of $3.65 and an average consensus analyst price target of $8.49.