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DryShips (NASDAQ:DRYS) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a note issued to investors on Friday. They currently have a $3.25 price objective on the stock. Zacks‘s price objective would suggest a potential downside of 6.07% from the stock’s previous close.

Zacks’ analyst wrote, “DryShips reported somber financial results for the first quarter of 2014 as both the top and the bottom line missed the corresponding Zacks Consensus Estimate. Despite witnessing strong revenue growth across all its segments, DryShips faces considerable risks as a major portion of its contracts are currently under the volatile spot rate market. Moreover, the ongoing tensions in Ukraine and Iraq may severely hurt the company’s profitability moving forward. In addition, higher debt levels and the cyclical nature of the shipping industry may act as headwinds for the company. Meanwhile, the stock price of DryShips has soared a whopping 113% in the last year. We do not find any near-term growth catalyst for the company. Thus, we downgrade our recommendation on DryShips to Underperform.”

DryShips (NASDAQ:DRYS) traded down 1.73% on Friday, hitting $3.40. 3,403,169 shares of the company’s stock traded hands. DryShips has a one year low of $1.65 and a one year high of $5.00. The stock has a 50-day moving average of $3.13 and a 200-day moving average of $3.46. The company’s market cap is $1.475 billion.

DryShips (NASDAQ:DRYS) last announced its earnings results on Thursday, May 22nd. The company reported ($0.04) EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.02 by $0.06. The company had revenue of $457.49 million for the quarter, compared to the consensus estimate of $445.56 million. During the same quarter in the prior year, the company posted ($0.11) earnings per share. The company’s quarterly revenue was up 43.1% on a year-over-year basis. On average, analysts predict that DryShips will post $-0.01 earnings per share for the current fiscal year.

DryShips Inc (NASDAQ:DRYS) is a holding company.

To view Zacks’ full report, visit Zacks’ official website.

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