OceanPal Inc. (NASDAQ: OP) experienced a 2.9% increase in stock price during trading on Tuesday, reaching a high of $1.1899 before closing at $1.08. Approximately 148,812 shares changed hands, significantly lower than the average daily volume of 454,017 shares. The stock had previously closed at $1.05, indicating a modest upward trend despite overall market volatility.
Analysts Weigh In on OceanPal
Recent evaluations from various equities research analysts reveal a cautious outlook on OceanPal’s stock. On October 8, Weiss Ratings reaffirmed a “sell (e+)” rating for OceanPal, reflecting concerns about the company’s performance. Earlier, on August 30, Wall Street Zen also adjusted their rating to “sell.” As it stands, one analyst has assigned a Sell rating, leading to an average rating of “Sell” for the stock according to data from MarketBeat.
The company’s market capitalization is currently around $7.23 million, with a price-to-earnings (P/E) ratio of -0.02 and a beta of 1.16, indicating higher volatility compared to the market. OceanPal’s 50-day moving average is $1.46, while its 200-day moving average stands at $10.24. These figures suggest a significant drop in stock value over time, raising questions about future performance.
Share Buyback Program Announced
On December 1, 2023, OceanPal’s Board of Directors approved a share buyback program allowing the company to repurchase up to $10 million worth of shares. This initiative permits the reacquisition of up to 109% of its shares through open market purchases, a move generally interpreted as a sign that the management believes the stock is undervalued. Share buyback programs are often viewed as a strategy to bolster shareholder value.
In terms of institutional investment, Sabby Management LLC has recently acquired a new position in OceanPal. During the third quarter, the firm purchased 668,969 shares, valued at approximately $823,000. This acquisition reflects a growing interest in the company, as OceanPal now constitutes 0.9% of Sabby Management’s investment portfolio, making it the firm’s eighth largest holding. Sabby Management LLC reported owning 9.99% of OceanPal as of its latest filing with the Securities and Exchange Commission (SEC).
OceanPal Inc., incorporated in Bermuda, focuses on the ownership and operation of modern crude oil tankers on long-term time charter agreements. The fleet includes both very large crude carriers (VLCCs) and Suezmax vessels, which are built to high technical and safety standards. By securing multi-year charter agreements with major oil producers and trading houses, OceanPal aims to establish stable revenue streams and enhance cash flow predictability.
As the company navigates the complexities of the shipping industry, its recent stock performance and institutional interest may signal potential opportunities for investors despite the prevailing analyst skepticism.
