Castor Maritime Inc.

Castor Maritime Inc. (NASDAQ: CTRM) is a global seaborne transportation company specializing in dry bulk cargo, crude oil, and refined petroleum products. It has a fleet of 27 ships, 19 dry bulk carriers and eight tankers, with a cargo-carrying capacity of 2.3 million deadweight tons (dwt) and an average age of 13.5 years.

Key Highlights:

• The company reported a growth of 14.50x in revenues to USD 43.28 million in Q3FY21 (ended September 30, 2021) compared to USD 2.79 million in Q3FY20.
• CTRM's net income increased to USD 15.46 million in Q3FY21 vs. a loss of USD 0.58 million in Q3FY20.
• As of September 30, 2021, the company had cash and cash equivalents of USD 36.29 million and total debt of USD 82.44 million, indicating a leveraged balance sheet.
• CTRM operates at a Net Margin of 35.7% in Q3FY21 vs. the industry median of 6.7%.
• CTRM announces the delivery of two vessels (M/T Wonder Bellatrix and M/V Magic Callisto) on January 5, 2022. Both vessels were bought with cash on hand and paid for in full.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the extreme lower end of its 52-week range of USD 1.32 to USD 19.50.
• CTRM's stock price decreased 41.53% and 69.16% in the past three and nine months.

Technical Price Chart (as of January 11, 2022). Analysis by Kalkine

Conclusion: Considering the topline growth, leveraged balance sheet, unfavorable macroeconomic factors, and other technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 1.38, up 2.22%, as of January 11, 2022.

*The reference data in this report has been partly sourced from REFINITIV.

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