Thursday, December 23, 2021

Grindrod Shipping (GRIN)
Added Stock Buy Backs Reinforce Favorable Outlook

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.

Added buy backs of $1.65 million announced. Over the past two weeks, an additional ~109k shares were bought back at an average price of $15.20/share, or $1.65 million. Combined with earlier buy back of ~592k shares at an average price of $14.38/share, a total of ~700k shares have been bought back in 4Q2021 at an average price of $14.51/share, or $10.16 million. This number is ~4% 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.


No change to 2021 EBITDA estimate, but higher than expected stock buy backs lower cash portion of 4Q2021 dividend estimate.  Due to continued higher-than-expected stock buy back activity (earlier buy backs were highlighted in a December 10th note), our 4Q2021 dividend estimate of $0.69/share now includes cash of $0.16/share (down from $0.25/share) and stock buy backs of $0.53/share (up from …

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.