SSW - Why Shares of Seaspan Dropped on Thursday Morning
Shares of Seaspan (NYSE: SSW) fell more than 10% on Thursday morning after a Wall Street analyst slapped a sell rating on the shipping company. Seaspan shares had been up more than 60% over the past year, and investors seemed to take the downgrade as a good opportunity to make a profit.
Seaspan, which owns a fleet of more than 100 containerships, was downgraded to a sell from a hold prior to markets opening Thursday. Analyst Benjamin Nolan said in a note that while market conditions for global shipping have improved, the outlook for global demand does not justify the current valuation.
Seaspan container ships. Image source: Seaspan.