Strong end to the year and another dividend declared. Adjusted EBITDA of $91.6 million and TCE rates of $29.4k/day were very strong and in line with expectations. While opex and G&A were higher than expected due to acquisition and refinancing activity, both should moderate this year. 4Q2021 dividend of $2.05/share was declared based on EPS of $6.79/share.1Q2022 Forward cover of 95% is high. Fine Tuning 2022 EBITDA and dividend estimate. Our EBITDA estimate of $366.1 million is based on TCE revenue of $512.1 million, TCE rates of $27.7k/day, ownership days of 19,345 (+1,087) and cash operating costs of $7.4k/day. Based on the dividend payout target of 30% of net income, our 2022 dividend estimate is $6.73/share.Liquidity is high and financial flexibility improving. Liquidity was high at $186.2 million at yearend 2021, with cash of $86.2 million and revolver availability of $100.0 million. Buy backs of stock on weakness and/or convert debt seem likely at some point.Well positioned looking at rest of year and into 2023. As highlighted in previous research reports, several milestones were achieved over the past five years and the moves enhanced the competitive position moving into this year. The fleet renewal program has improved the fleet profile, the capital structure has been simplified, and moves to enhance shareholder value have been implemented.Recent rebound, but still attractive risk/reward profile. Maintain Outperform rating and price target of $84/share. The recent successes include record 4Q2021 operating results, a global refinancing and the shift to variable dividends. Plus, an expanded fleet positions EGLE to capitalize on attractive, albeit volatile, dry bulk market fundamentals. We viewed the drop of 10% in 4Q2021 as unwarranted and believe that the risk/reward profile remains very attractive even though the stock has rebounded with a gain of 22% in 1Q2022. The stock is trading at an EV/2022E EBITDA multiple of 2.1x (or 2.3x on a fully diluted bases), which is near the low end of the current range of 1.7x-5.1x for dry bulk shipping companies in our research universe. We believe that the below average multiple creates a positive skew in the risk/reward profile. Read More >>