Seanergy Maritime (NASDAQ:SHIP) is a stock on the move. At the time of writing, SHIP stock is up more than 45%.
Of course, investors may be wondering what the underlying catalyst is that is taking this stock higher. Let’s explore what the company does and what’s driving this stock higher today.
Maritime Shipping in High Demand
Seanergy’s core business is in providing marine dry bulk shipping services globally. This is the only such publicly listed company in the U.S., and is thus an interesting way to play this space. Indeed, the marine shipping space is one which is booming right now. According to a recent piece by The Economist, shipping rates from Asia to Europe have more than tripled since November. Shipping companies are taking advantage of current macroeconomic fundamentals driving this sector. Demand is high and supply is limited. Containers have piled up due to the pandemic, providing a perfect storm for equities like SHIP stock.
SHIP has a fleet of 11 Capesize vessels with an average age of 12 years. Given the limited options in the U.S. to play this sector, SHIP stock appears to be catching a bid.
Nasdaq Listing Reinstated for SHIP Stock
Another key driving force behind SHIP stock’s rise has been the fact this stock has regained its compliance with the Nasdaq Exchange. The company announced today that all concerns regarding the minimum bid price of the company’s stock needed to maintain compliance have been dealt with. This certainly provides legitimacy to this stock. Additionally, investors now have the potential to invest in SHIP stock without the potential overhang of delisting. This was an anchor that has been removed, and has caused SHIP stock to shoot to the surface in a big way today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.