Diana Shipping received a lift today, thanks to making its shares look more attractive for resale, analysts say.
The Simeon Palios-led owner's stock gained 10.3% today to close at $3.31 after announcing that it extended the deadline and raised the share price on a tender offer begun last month.
The New York-listed company today raised the share price on 3.13 million shares by $0.20 to $3.40 and pushed back the last offer day by two weeks to 28 May.
"The tender is 100%" of the reason for the stock's upswing, Jefferies analyst Randy Giveans told TradeWinds.
"Extensions and price increases don’t always move the stock — especially so meaningfully — but it makes sense in this case as the new price was 13% higher than yesterday’s close."
Today's slight gain in dry bulk rates also helped, he said.
Average TCE rates for dry bulk shipping have climbed slowly over the past two weeks to $9,153 per day from $8,845 for supramax bulkers, according to Clarksons.
