DryShips (DRYS) Sinks On Deal To Acquire Offshore Driller
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Price: $5.24 --0%
Rating Summary:
3 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
3 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Dry bulk shipper DryShips (Nasdaq: DRYS) is lower today after the company announced an agreement to acquire 30.4% of offshore drilling contractor, Ocean Rig ASA.
DryShips intends to finance the $405 million investment with a contribution of $162 million in cash on hand and $243 million in debt.
Cantor Fitzgerald lowered their price target on DryShips from $133 to $121, due to higher debt assumption. The firm maintained their Buy, saying the company's entry into deep water drilling is not an indicator that the dry bulk industry is beginning to soften.
Shares of DryShips are down over 13% to $72.72.
Other dry bulk shippers are also weaker today. TBS International (Nasdaq: TBSI), Diana Shipping Inc. (NYSE: DSX), Quintana Maritime (Nasdaq: QMAR) and Eagle Bulk Shipping (Nasdaq: EGLE) are all down.
DryShips intends to finance the $405 million investment with a contribution of $162 million in cash on hand and $243 million in debt.
Cantor Fitzgerald lowered their price target on DryShips from $133 to $121, due to higher debt assumption. The firm maintained their Buy, saying the company's entry into deep water drilling is not an indicator that the dry bulk industry is beginning to soften.
Shares of DryShips are down over 13% to $72.72.
Other dry bulk shippers are also weaker today. TBS International (Nasdaq: TBSI), Diana Shipping Inc. (NYSE: DSX), Quintana Maritime (Nasdaq: QMAR) and Eagle Bulk Shipping (Nasdaq: EGLE) are all down.
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