TOP Ships (TOPS) Stock Is Rocketing For Multiple Reasons

TOP Ships TOPS Stock News

TOP Ships Inc (NASDAQ: TOPS) is flying in the market this morning, trading on gains of more than 60% early on. However, if you go digging for press releases or SEC filings, you’ll be hard pressed to find anything. So, what’s the deal?

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It Starts With A Big Institutional Move

One of the big reasons for excitement in TOP Ships has to do with an institutional investor that has taken a large stake in the company. According to a recent Statement of Ownership, or 13G, filed with the SEC, Morgan Stanley has taken serious interest.

In fact, according to the filing, the investment bank now owns about 6.7% of outstanding shares of TOPS. Of course, this is very important news.

After all, investment banks like Morgan Stanley became so huge by making smart moves in the market. Their analysts do nothing more than look for great opportunities. So, when the investment bank decides to put a big egg in the TOPS basket, retail investors are going to pay attention.

A Tanker Sale May Drive Further Funding

Importantly, TOP Ships has been selling off a couple of tankers. While one important sale has already been completed, there is another on the horizons.

The company recently announced the sale of a 100% owned tanker. However, in the release, TOPS set the stage for yet another catalyst on the horizon. The company said that it is expecting to conclude the sale of a 50% owned vessel relatively soon.

In fact, the company said that it is expecting for the completion of this sale to take place in the second week of April. This works out because that is where we are sitting right now. So, investors are loading up on the stock awaiting the catalyst that will likely drive another $10 million in funding for the company.

Oil Is Playing A Role

Finally, oil is playing a key role here. With COVID-19 spreading around the world, and consumers staying at home in order to stay safe, demand for oil is falling hard. Of course, this leads to declines in the price of the black gold.

This is important for TOPS. After all, when it comes to containerships, one of the largest expenses faced is the cost of the fuel that it takes to run the ship. With oil prices so low, the company is able to generate better margins, leading to further excitement among investors.

The Bottom Line

The bottom line here is that TOP Ships seems to be making all of the right moves at the right times these days. As such, the company has caught the attention of one of the largest investment banks on the street.

Moreover, with oil prices low and the sale of a tanker expected to drive more funding through the doors, TOPS is a stock that’s well worth paying attention to.

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