Nordic American Tankers Ltd (NYSE: NAT) is down 10% in a month. The company has commenced its fleet expansion that involves buying and selling of ships as per the July 28, 2021 release.
On Tuesday, NAT stock fell 0.44% at $2.28 with more than 2.68 million shares, compared to its average volume of 2.52 million shares. The stock has moved within a range of $2.2400 – 2.3000 after opening the trade at $2.29.
Fleet Expansion Programme Commenced, Involving The Selling And Buying Of Ships
The company has sold 2000 built Suezmax in a fixed transaction, and Nordic American Tankers expects to deliver the vessel to the new owner before the end of November. This transaction is part of the company’s fleet expansion.
The company said recently that it had fixed a Suezmax to an anonymous oil firm for three years. The contract starts in November and will go on for a year at a daily rate of 420,000 and an option for two more years at higher rates. Most of the company’s vessels trade in the spot market, and the one-year or more contract is a risk management insurance policy, generating positive cash flow. In addition, the company’s strategy to trade in the spot market and lock profitable long-term deals enables its peak flexibility. Therefore, investors should watch NAT.
NAT stock is trading below the 20-Day and 50-Day Moving averages of $2.37 and $2.43 respectively. Moreover, the stock is trading below the 200-Day moving average of $2.94. The stock is down 33% over the past 6-month.