8 Best Marine Shipping Stocks to Invest In

5. Genco Shipping & Trading Limited (NYSE:GNK)

Number of Hedge Fund Holders: 21

Genco Shipping & Trading Limited (NYSE:GNK) is known for the global transportation of dry bulk cargoes as it operates a diverse fleet to meet the demands of various industries. It has a focus on transporting important materials like iron ore, grains, coal, and steel products. The company serves a wide range of clients, including trading houses, commodity producers, and government entities. It is 5th on our list of the best marine stocks to invest in.

The company operates a fleet projected to comprise 41 vessels, featuring 15 Capesize, 15 Ultramax, and 11 Supramax carriers. The fleet has a total capacity of approximately 4.3 million deadweight tons. The average age of its vessels is around 11.9 years, striking a balance between seasoned operational experience and opportunities for modernization through targeted upgrades.

Referring to the second quarter, CEO John C. Wobensmith emphasized the successful execution of a fleet renewal initiative aimed at enhancing operational efficiency. The company has been proactive in selling older vessels at favorable prices and reinvesting in newer, more advanced ships. Recent transactions, including the sale of two Capesize vessels, Genco Maximus and Genco Claudius, along with planned sales of Genco Warrior and Genco Hadrian, show this commitment. It helped generate significant cash inflow and will help it in avoiding $5 million in upcoming drydocking expenses, positively impacting overall profitability.

On September 10, Genco Shipping (NYSE:GNK) announced a notable adjustment to its dividend calculation methodology. By removing drydocking capital expenditures from the formula, the company aims to increase the cash available for distribution to shareholders starting in the third quarter of 2024. It has established a voluntary quarterly reserve of $19.5 million under this new approach, which provides flexibility in cash flow management while prioritizing shareholder returns.

In the second quarter, 21 hedge funds had stakes in Genco Shipping (NYSE:GNK), with total positions worth $81.3 million. As of June 30, Renaissance Technologies is the largest shareholder in the company and has a position worth $22.376 million.