Diana Stock Story


USD 5.35  0.01  0.19%   

It looks like International Seaways will continue to recover much faster as its share price surged up 3.92% today to Diana Shipping's 6.5603%. As many rational traders are trying to avoid industrials space, it makes sense to break down Diana Shipping a little further and understand how it stands against International Seaways and other similar entities. We are going to inspect some of the competitive aspects of both Diana and International.
Published over two months ago
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Should I sell all of International and Diana?

By analyzing existing basic indicators between Diana Shipping and International, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in International with a short position in Diana Shipping. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Diana Shipping has an asset utilization ratio of 11.66 percent. This suggests that the company is making $0.12 for each dollar of assets. An increasing asset utilization means that Diana Shipping is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Diana or International is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Diana Shipping dividends

A dividend is the distribution of a portion of Diana Shipping earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Diana Shipping dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Diana one year expected dividend income is about $0.18 per share.
Preferred Dividends Income Statement Impact is likely to rise to about 6.8 M in 2022, whereas Payment of Dividends and Other Cash Distributions is likely to drop (8.6 M) in 2022.
Last ReportedProjected for 2022
Preferred Dividends Income Statement Impact6.6 M6.8 M
Payment of Dividends and Other Cash Distributions-7.9 M-8.6 M
Dividend Yield 0.13  0.12 
Dividends per Basic Common Share 0.41  0.41 
Investing in stocks that pay dividends, such as stock of Diana Shipping, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Diana Shipping must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Diana Shipping. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Diana Shipping's Liquidity

Diana Shipping financial leverage refers to using borrowed capital as a funding source to finance Diana Shipping ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Diana Shipping financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Diana Shipping's total debt and its cash.

Correlation Between Diana and International Business

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Diana Shipping together with similar or unrelated positions with a negative correlation. For example, you can also add International Business to your portfolio. If International Business is not perfectly correlated to Diana Shipping it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Diana Shipping for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between DSX and IBM for more information.

Another Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Diana Shipping revenue. Based on the latest financial disclosure, Diana Shipping reported 214.2 M of revenue. This is 93.88% lower than that of the Industrials sector and significantly higher than that of the Marine Shipping industry. The revenue for all United States stocks is 97.73% higher than that of Diana Shipping. As for International Seaways we see revenue of 327.27 M, which is much higher than that of the Marine Shipping

Diana214.2 Million
International327.27 Million
214.2 M
327.3 M

Diana Shipping implied volatility may change after the rise

Current potential upside is at 7.05. Diana Shipping shows above-average downside volatility for the selected time horizon. We advise investors to inspect Diana Shipping further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Diana Shipping future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Diana Shipping's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Diana Shipping's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Diana Shipping Implied Volatility

Diana Shipping's implied volatility exposes the market's sentiment of Diana Shipping stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Diana Shipping's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Diana Shipping stock will not fluctuate a lot when Diana Shipping's options are near their expiration.

Our Bottom Line On Diana Shipping

While some companies within the marine shipping industry are still a little expensive, even after the recent corrections, Diana Shipping may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither purchase new shares of Diana nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Diana Shipping.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Diana Shipping. Please refer to our Terms of Use for any information regarding our disclosure principles.

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