SEANERGY MARITIME Common Stock (NASDAQ: SHIP)
SEANERGY MARITIME is having an incredible day in the market today, following up on gains that we’ve seen in the shipping sector since the open of the market yesterday. So far today, the stock has nearly doubled in value. However, what’s causing the gains and are they here to stay? Today, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching ahead with regard to SHIP.
What We’re Seeing From SHIP
As mentioned above, SEANERGY MARITIME has been in the midst of a strong run since the open of the market yesterday. Today, the stock opened in the green and has been climbing further and further into gains all day. In fact, at this point, the stock has nearly doubled in value. At the moment (12:10), SHIP is trading at $5.30 per share after a gain of $2.55 per share or 92.73% thus far today.
Why Are Shipping Stocks Soaring?
No matter what stock you’re looking at, if it’s in the shipping industry, chances are that it’s climbing high. This is no different with SHIP. However, why exactly are shipping stocks climbing so high? The answer is simple. There was recently an update to a key index that suggests that shipping volumes are going to climb.
The index is known as the Baltic Dry Index. Ultimately, this index tracks what’s happening in the shipping arena, and lets investors know if demand for shipments is likely to rise or fall. Recently, there was an update to the Baltic Dry Index. The update showed that the index had climbed from 800 points to 1,000 points in a matter of weeks. This suggests that the shipping industry is going to see a flood of demand. As a result, companies like SEANERGY MARITIME are going to see more business, leading to stronger revenues and stronger profits.
What We’ll Be Watching For Ahead
Moving forward, we’ll be keeping a close eye on the Baltic Dry Index. While the index is causing big gains at the moment in the shipping industry, the gains were a surprise, and a surprise adjustment in the other direction can lead to big declines in stocks like SHIP.
Nonetheless, at the moment, things are looking incredibly strong. Shipping demand is climbing and that’s a great thing for SHIP and others in the industry. On top of that, Donald Trump’s election as President of the United States will also likely play a role here, and most investors view it as a positive one.
Finally, with the holiday season just around the corner, shipping companies like SEANERGY MARITIME are likely to see yet another spike in demand. At the end of the day, consumer shopping habits are changing with more and more shopping online. This is a great thing for companies like SHIP; especially when it’s holiday season and consumers are doing more shopping than normal.
What Do You Think?
Where do you think SHIP is headed moving forward? Join the discussion in the comments below!