Eagle Bulk Shipping Inc (NASDAQ:EGLE) is spiking sharply on no apparent news Friday. Shares are up 50% — but the move comes a couple weeks after both a reverse stock split and its second-quarter earnings report.
The move in EGLE stock is likely being helped out by a little bit of a short squeeze. As of the most recently available data, nearly 8% of Eagle Bulk Shipping’s float was held short. Roughly 660,000 shares had been traded by 10:30 a.m., versus a daily trading volume of just 80,000.
Eagle shares, like other dry bulk operators such as Diana Shipping Inc. (NYSE:DSX) and Navios Maritime Holdings Inc. (NYSE:NM) have been obliterated over the past few years. EGLE stock is off 90% year-to-date, and nearly 97% since going public in 2014. In fact, the company had to execute a 1-for-20 reverse split earlier this month to get its shares out of penny stock territory.
On Aug. 8, the company reported a net loss of $9.98 per share, which was narrowed from the year-ago period’s $14.62. Revenues were actually up from $22.7 million to $25.6 million.
CEO Gary Vogel said about the quarter:
“In the midst of a historically weak drybulk market, Eagle Bulk’s second quarter was bookended by two milestone achievements as we seek to re-position the Company for future success. First, we entered the quarter having completed a comprehensive balance sheet recapitalization that significantly improved our long-term financial flexibility. Then, subsequent to the quarter’s close, we raised nearly $90 million in growth capital through a common stock private placement. Together, we expect that these will enable us to commence a fleet growth and renewal program while developing Eagle Bulk’s commercial operating platform. The highlights of this platform include continued development of a top-tier team, the opening of our new European commercial office, as well as the completion of our initiative to bring all of our owned vessels under in-house management, with a corresponding positive impact on operational excellence.”
Even with today’s move, shares still are off 85% year-to-date.
