Friday, December 10, 2021

Grindrod Shipping (GRIN)
Larger than Expected Stock Buy Back

Grindrod Shipping, originated in South Africa with roots dating back to 1910. The company is based in Singapore, with offices around the world including, London, Durban, Cape Town, Tokyo and Rotterdam. Its primary listing is on Nasdaq and secondary listing on the JSE. Grindrod Shipping owns and operates a diversified fleet of owned, long-term chartered and joint-venture dry-bulk and liquid-bulk vessels across the globe.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Stock buy back of $8.5 million higher than expected due to recent price weakness. Over the past few weeks, ~592k shares were bought back at an average price of $14.38/share, or a total of $8.5 million. This number is ~3% of the shares outstanding and represents a significant jump from ~92k shares bought back at an average price of $14.87/share, or a total of $1.4 million, in 3Q2021.

4Q2021 dividend estimate of $0.69/share now includes cash of $0.25/share and stock buy backs of $0.45/share.  Based on our EPS estimate of $2.23/share and a minimum payout ratio of 30%, our 4Q2021 dividend estimate is $0.69/share. The stated policy nets out stock buy backs against cash, and our dividend estimate consists of cash of $0.25/share and stock buy backs of $0.45/share. While the total ...

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.