Genco Stock Hits 52-Week High as Diana Shipping Launches Proxy Fight
The activist campaign follows Genco's rejection of a $20.60 per-share takeover bid from Diana, setting the stage for a battle over control of the dry bulk shipper.
Shares of Genco Shipping & Trading (NYSE: GNK) climbed to a new 52-week high on Friday after major shareholder Diana Shipping Inc. (NYSE: DSX) announced its intention to nominate six independent candidates for election to Genco’s board, escalating its activist campaign into a full-blown proxy contest.
The stock rose 1.43% to close at $19.88 in New York, as investors reacted to the move that could potentially unlock further value or lead to a sale of the company. The nomination of a majority-slate for the board signals a direct challenge to Genco's current leadership and strategy.
This latest development is a significant escalation in a saga that began late last year. In January, Genco’s board unanimously rejected a non-binding, all-cash acquisition proposal from Diana Shipping for $20.60 per share. Genco stated at the time that the offer, which was only slightly above its book value per share of $20.49, “materially undervalues Genco and its future prospects.”
Having been rebuffed in its takeover attempt, Diana, which holds a 14.8% stake in Genco, is now seeking to gain control of the boardroom. The move indicates that Diana is not backing down and is prepared to take its case directly to Genco’s shareholders at the company’s next annual meeting.
In a press release, Diana confirmed it had nominated six director candidates for election. This action pits two of the industry's well-known names against each other, creating significant uncertainty but also the potential for major strategic shifts at Genco, a dry bulk shipping firm with a market capitalization of approximately $848 million.
Genco had anticipated such a move. The company adopted a shareholder rights plan, commonly known as a “poison pill,” in October 2025 and later amended it in November to lower the ownership threshold that would trigger it. The company cited the rapid accumulation of its shares by a competitor as the reason, a clear reference to Diana's growing stake.
The activist pressure comes at a complex time for the dry bulk shipping sector. While a tight supply of large Capesize vessels and strong demand for long-haul routes has created an optimistic outlook for parts of the market, other segments face headwinds from potential vessel oversupply and shifting commodity demand.
Genco recently reported a narrow net loss for the third quarter of 2025, with revenue declining 19.5% year-over-year to $79.9 million, though this figure still beat analyst expectations. Despite the challenging market, Wall Street analysts remain broadly positive on Genco, with a consensus price target of $22.90, suggesting further upside from its current trading level.
Investors are now betting that Diana's campaign could force Genco's hand, either leading to a sale of the company at a higher premium than the one previously offered, or prompting other strategic changes such as increased dividends or share buybacks. The looming proxy fight will be closely watched by the shipping industry as a key indicator of shareholder activism and consolidation pressures in the sector.