Today, one of the high-flying stocks investors are watching closely is Castor Maritime (NASDAQ:CTRM). Indeed, the 22% move in CTRM stock at the time of writing is a significant one. This move comes on heavier than usual volume, suggesting investors are pricing in some big news.
Of course, retail investors have been on the CTRM stock bandwagon for some time. This is a company that has remained a short-squeeze candidate, and given the move this stock has had since late last year, it appears retail investors have been on the money with this pick. This is a stock that has moved from $0.11 at lows this past year to over $2.50 per share at the time of writing. Those are some impressive gains for those aggressive investors who put some money to work in this stock.
However, today there’s another catalyst boosting CTRM stock. Let’s dive into the key news taking Castor Maritime higher today.
CTRM Stock on the Move on Solid Earnings
For beaten up companies such as Castor Maritime, quarterly earnings reports are perhaps more crucial than for other large cap stocks. This is a company that remains a turnaround story and requires continuous improvement for investors to stay aboard. Today’s numbers appear to indicate that this ship is moving in the right direction.
The shipping company posted rather impressive results, growing earnings to $6.5 million for this past quarter, compared to basically break-even during the same quarter the previous year. Revenues were up more than 800%, jumping from $2.6 million to $21.8 million. And the company’s earnings per share of 7 cents blew last year’s 12-cent loss out of the water.
These results were driven by the successful delivery of 12 vessels during Q2. The company expects additional vessels to come online during the third quarter, as Castor Maritime has been on a buying spree of late. With global shipping rates remaining elevated, CTRM stock remains a high-leverage play on inflation in the supply-chain space.
This fact, combined with the momentum retail traders have provided, has culminated in a move of more than 20% today. That said, this is a stock that is likely to remain highly volatile for some time. Investors should be wary about putting too much money to work in any given stock, particularly those with such volatile characteristics.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.