DryShips Inc. (NASDAQ: DRYS)
DryShips had a great time in after-hours. However, we’ve seen a bit of a decline in the pre-market. Nonetheless, at the moment, it looks like the stock will open the day in the green. But will it stay there? Today, we’ll talk about what we’re seeing from DRYS, why, and what we’ll be watching for ahead.
What We’re Seeing From DRYS
As mentioned above, DryShips had a great time in after-hours trading yesterday, climbing around 20%. However, as the morning starts and pre-market trading gets rolling, we’re seeing a correction, bringing the stock down a bit. At the moment (8:39), DRYS is trading at $2.00 per share after a gain of 6.95% thus far today.
Why The Stock Is Up
DRYS was one of the first tickers that our partners at Trade Ideas brought to our attention this morning. As soon as they did, we started digging to see what exactly was going on with the stock. It didn’t take long to dig up the dirt. The gains are ultimately the result of a dividend announcement that was made yesterday.
In after-hours yesterday, DryShips announced a new dividend policy. Under this new policy, the company plans to pay a regular fixed quarterly dividend in the amount of $2.5 million to share holders. The company also said that it will possibly pay additional amounts each quarter depending on market conditions and the company’s financial performance for that quarter. As a result, the bulls seem to see some light at the end of the tunnel, and the excitement is leading to gains.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on DRYS. One of the big questions today is whether or not the stock will hold onto gains and possibly continue up. Nonetheless, after a quick search on StockTwits and Twitter, it’s clear that investors have mixed opinions. While the dividend policy is exciting to the bulls, the bears continue to point to dilution and expect declines. So, we are expecting to see a great battle between the bears and the bulls surrounding the stock today. Nonetheless, we’ll continue to keep an eye on the news and update you as it breaks.
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