Star Bulk Carriers, listed on NASDAQ and led by Petros Pappas, attracts substantial investment interest.
Notably, Norwegian shipowner John Fredriksen and Dr. Ioannis Coustas’ Danaos have both increased their stakes in the shipping firm, which operates a fleet of 151 bulk carriers and is currently developing five eco-friendly Kamsarmax vessels.
As of now, Fredriksen holds 11.4% of the company’s shares, while Danaos has a 5.23% stake.
The heightened investment interest stems from several factors. Firstly, Pappas has successfully positioned Star Bulk as one of the leading dry bulk shipping management companies globally through a series of mergers and acquisitions.
Secondly, analysts indicate that the current share price is significantly undervalued. It is trading at $15.50, down from an estimated fair value of $64.40, with a target price of around $20 per share expected over the next year.
Market Activity
John Fredriksen has increased his ownership to 11.4% of Star Bulk’s shares.
The Norwegian investor acquired an additional 1.54 million shares, bringing his total to 13,340,000 shares, equivalent to 11.39% of the company’s equity.
In March, Fredriksen revealed his acquisition of 10% of the Greek shipping company’s shares after divesting a majority stake in Golden Ocean to CMB.Tech, owned by the Saverys family, for $1.2 billion.
Petros Pappas, CEO of Star Bulk, expressed his approval of Fredriksen’s investment, viewing it as a testament to the company’s value and growth potential.
Analysts at Fearnley Securities characterized this investment as a “strong vote of confidence” in Star Bulk and the dry bulk sector overall.
Similarly, Danaos, chaired by Dr. Ioannis Coustas, is following suit. The NYSE-listed firm, a prominent independent containership operator that also manages bulkers, invested $32 million last week to acquire 2.06 million shares of Star Bulk.
It’s worth noting that Danaos previously held a 14% stake in Eagle Bulk, which merged with Pappas’ company. Currently, Danaos owns 6.13 million shares of Star Bulk, valued at approximately $89 million, representing a 5.23% stake.
