Navios Maritime Holdings Inc. (NM) Shares Plunge on Proposed New Shipping Container Rule


Navios Maritime Holdings Inc. (NYSE:NM) shares have dipped today as shippers, farmers, retailers and other manufacturers are protesting a new shipping rule that is aimed at making the sector safer. Safe for transport, but perhaps not safe for the business plans of companies like Navios Maritime Holdings Inc. (NYSE:NM), who rely on keeping prices down.

The rule is set to go into effect this coming July, and it will require accurate weighing of shipping containers prior to being loaded onto ships. Aimed at preventing disasters at sea, other potentially dangerous situations and helping reduce the potential of ship capsize, the rule has aggravated companies like Navios Maritime Holdings Inc. (NYSE:NM). Unfortunately for companies like them, few are equipped with the technology needed in order to easily weigh each and every container in such a short period of time.

Investors apparently are worried what such a rule like this will do to the bottom line of Navios Maritime Holdings Inc. (NYSE:NM).The stock is down 17.11% or $0.25 following the news, hitting $1.24 per share. Approximately 820,173 shares traded hands. NM shares have declined 60.69% since May 4, 2015 and are currently downtrending. It has underperformed the S&P500 by 59.61%.

From a total of 2 analysts covering Navios Maritime Holdings (NYSE:NM) stock, 1 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 50% of the ratings are positive. Navios Maritime Holdings was the topic of 4 analyst reports since August 21, 2015 according to the firm StockzIntelligence Inc. Stifel Nicolaus downgraded shares on November 24 to a “Hold” rating. Zacks downgraded NM stock in a recent report from August 26 to a “Hold” rating.

Navios Maritime Holdings Inc. is a global, vertically integrated seaborne shipping and logistics company. The company has a market cap of $160.46 million. The Firm is focused on the transport and transshipment of dry bulk commodities, including iron ore, coal and grain. It currently has negative earnings. Navios Holdings operates through two divisions: the Dry bulk Vessel Operations and the Logistics Business.