Danaos (NYSE:DAC) Shares Gap Down on Disappointing Earnings

Shares of Danaos Co. (NYSE:DAC) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $88.80, but opened at $84.71. Danaos shares last traded at $87.18, with a volume of 24,827 shares trading hands.

The shipping company reported $6.04 EPS for the quarter, missing the consensus estimate of $6.33 by ($0.29). Danaos had a return on equity of 16.03% and a net margin of 49.81%. The firm had revenue of $253.31 million for the quarter, compared to the consensus estimate of $242.00 million. During the same period in the prior year, the business earned $7.15 EPS.

Danaos Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 5th. Stockholders of record on Tuesday, May 27th will be paid a dividend of $0.85 per share. The ex-dividend date of this dividend is Tuesday, May 27th. This represents a $3.40 annualized dividend and a dividend yield of 3.96%. Danaos’s payout ratio is currently 13.12%.

Danaos announced that its Board of Directors has initiated a stock buyback program on Monday, April 14th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the shipping company to buy up to 6.8% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. StockNews.com lowered shares of Danaos from a “buy” rating to a “hold” rating in a research note on Wednesday. Jefferies Financial Group raised their price target on shares of Danaos from $100.00 to $105.00 and gave the stock a “buy” rating in a research note on Wednesday.

Institutional Investors Weigh In On Danaos

Several large investors have recently modified their holdings of the stock. Ion Asset Management Ltd. grew its stake in Danaos by 47.8% in the 4th quarter. Ion Asset Management Ltd. now owns 566,050 shares of the shipping company’s stock valued at $45,324,000 after buying an additional 183,050 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in Danaos by 18.1% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 314,787 shares of the shipping company’s stock valued at $25,205,000 after buying an additional 48,155 shares in the last quarter. TrueMark Investments LLC grew its stake in Danaos by 252.9% in the 4th quarter. TrueMark Investments LLC now owns 65,485 shares of the shipping company’s stock valued at $5,243,000 after buying an additional 46,930 shares in the last quarter. Bastion Asset Management Inc. purchased a new position in Danaos in the 4th quarter valued at approximately $3,736,000. Finally, No Street GP LP grew its stake in Danaos by 11.1% in the 4th quarter. No Street GP LP now owns 250,000 shares of the shipping company’s stock valued at $20,018,000 after buying an additional 25,000 shares in the last quarter. Hedge funds and other institutional investors own 19.01% of the company’s stock.

Danaos Price Performance

The firm has a market capitalization of $1.63 billion, a PE ratio of 3.31 and a beta of 1.34. The company has a debt-to-equity ratio of 0.19, a quick ratio of 3.78 and a current ratio of 3.93. The business’s 50 day moving average is $78.68 and its two-hundred day moving average is $79.95.

About Danaos

Danaos Corporation, together with its subsidiaries, provides container and drybulk vessels services in Australia, Asia, and Europe. The company offers seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry. As of April 03, 2024, it had a fleet of 68 containerships aggregating 421,293 twenty-foot equivalent units in capacity.