GOGL Stock: Up 1.21% Today – Time to Buy or Sell?

Golden Ocean (NASDAQ: GOGL) stock started today’s session on the bull market. Currently, GOGL stock price is trading at $13.40, up by 1.21% for the day. This stock is popular now, with analysts forecasting positive growth in the coming months.

Golden Ocean Group Ltd. is a major player in the transportation sector, primarily through marine shipping. The company operates dry bulk vessels, transporting various commodities such as grains, fertilisers, coal, and ores. Additionally, it purchases and sells vessels. And guess where its headquarters is? In Bermuda.

Remember all these tales about disappearing ships? Or ghost-ships? Well, thus far, Golden Ocean’s vessels are all accounted for. It has also maintained a good reputation ever since its first appearance on the market in 1996.

According to the latest data, the company’s market capitalisation is currently ‪$2.68B, and yearly revenue hit ‪$885.77M. Moreover, the team reported a net income of $112.27M over the last year.

While these figures are substantial, it doesn’t always mean the stock is a buy. For investors, the main attraction is strong revenue returns. A lot depends on the market conditions and the changes within the company and its sector.

So, where does the GOGL stock price stand on the grand scale of the events today? Should you buy it or not? Let’s discover how it evolved over the last year and what the analysts forecast.

How is GOGL Faring In 2024?

The company managed its finances successfully in the first quarter of 2024, cutting the total operating expenditures significantly. The latter dropped to $62.6 million in the first quarter of this year from $63.4 million in the fourth quarter of 2023.

Furthermore, it ensures that OpEx levels stay steady at $6,700 per ship per day (excluding drydock costs, though). It indicated that the Golden Ocean is efficiently controlling these costs.

The team performs perfectly, and it shows. The company had a net financial cost of $27.2M, but at the same time, it profited $7.3M on derivatives and other income. Financial costs are expected as every business needs funding. But the fact that the team managed to reach such high income from derivatives and other sources, shows that it’s successfully navigating market volatility.

In addition, the company manages its cash flow well. Currently, it controls $115.8M derived from various operations. Golden Ocean team is flexible and constantly searches for new expansion opportunities and additional income sources.

Sometimes, the team uses cash flow for new investments. Thus far, it hasn’t drawn its credit lines, though it has access to $125M. It also has $147.4M in cash.

Golden Ocean management proved that it can successfully lead the company and generate substantial revenue. Moreover, the team’s nonstop research and development shows its dedication to achieving even more success in the market and expanding the company.

The company’s efficient financial management proves its stock is a sound investment. It already boasts big cash reserves, which enables the company to be more flexible and explore other opportunities.

GOGL 5-Day Chart

GOGL Stock News: Other Companies Are Investing in This Stock

Other market players also consider this stock a reliable investment with strong potential. BNP Paribas Financial Markets increased its stake in GOGL shares by a whopping 406.0% in Q1, 2024. The company already filled this information in the SEC office.

This institutional investor owns 156,392 GOGL shares currently. It added 125,484 shares in the first quarter, proving its faith in Golden Ocean and its prospects. Before that, BNP Paribas Financial Markets owned about 0.08% of GOGL stock. The latter’s value hit $2,027,000 at the end of the last quarter.

Other investors and hedge funds also started purchasing more shares recently. For example, in the fourth quarter, Blue Trust Inc. added its portfolio of GOGL shares with a total value of $53,000.

Meanwhile, VisionPoint Advisory Group LLC bought shares of approximately $41,000 in the same quarter.

Quadrature Capital Ltd went even higher, spending $171,000 on GOGL, while SG Americas Securities LLC paid $243,000. However, Assenagon Asset Management S.A. has the highest stake among the new investors. It invested $313,000 in the Golden Ocean.

Overall, hedge funds and institutional investors own 22% of the stock. That indicates their faith in this company. Market sentiment is positive, and it cries: BUY! But sometimes stocks get overpriced because of strong interest, and the fear of missing out compels investors to act before calculating whether all odds are in their favour.

Hasty decisions might lead to losses, though. So, let’s see what the analysts think about these shares.

What is the GOGL Stock Forecast? Analysts’ Predictions

Many analysts discuss this stock thanks to its current popularity, and their forecasts are a bit different. For example, Jefferies Financial Group thinks it’s not a buy, lowering its rating to a “Hold.” Moreover, it set the price target at $15.50 for GOGL last week.

On the other hand, StockNews.com has changed its rating from a “Sell” to a “Hold,” indicating more bullish sentiment. Golden Ocean Group reported its earnings on Wednesday, May 22.

The company’s earnings per share was $0.29 for the last quarter. That surpassed analysts’ consensus estimates by $0.06.

Furthermore, the company’s return on equity reached 8.67%, with a net margin hitting 19.92%. Overall, the revenue for this quarter was $196.70M, which is quite a good result.

Consequently, analysts now forecast that the earnings per share will reach 1.43 in 2024. In addition, the company published its quarterly dividend. It gave a $0.30 dividend to its shareholders on Friday, June 17. According to this data, a dividend yield for a year is 9.06%, while the company’s payout ratio hit 129.03%.

Despite the differing opinions on the market, some analysts consider this stock a strong buy, further bolstering the investor’s interest.

Is the GOGL Stock Buy or Sell?

So, what is the consensus? Should you buy GOGL, sell, or hold? The consensus rating currently says “Hold,” but some platforms claim this stock is a “Buy.”

The average price target for these shares is $15.09 per GOGL. This figure is calculated according to 4 Wall Street analysts’ 1-year price targets. As we already mentioned, the GOGL stock price today is $13.40.

Furthermore, some experts believe the stock price will hit $14.05 in 2025. They calculated this figure according to the index’s average growth during the last ten years. Short-term forecasts are also bullish.

For long-term predictions, experts claim that the Golden Ocean Group stock will soar to $19.02 in 2030. However, that only happens if it maintains its 10-year average growth rate. Still if this prediction comes true, that would mean that the stock grew by 43.87% from its current price.

While the GOGL stock price today forecasts positive sentiment, indicating strong and steady growth, remember that the stock market has its own volatility and forecasting price movements doesn’t mean the stock will reach that price.

There are many factors to consider, including the market sentiment, global economic conditions, investors’ sentiment and the company’s inner challenges and developments. Thus far, Golden Ocean Group managed to stay strong and develop steadily, taking its niche in the shipping industry market. But a lot depends on the company’s continued success.

So, investors should remain vigilant and follow its developments and market news. Investing is always risky, but you can mitigate this risk if you make informed decisions. Hop on our platform to learn more about the best investing opportunities!

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