Ardmore Shipping (NYSE:ASC) Announces Quarterly Earnings Results

Key Points

• Ardmore Shipping beat quarterly expectations: It reported EPS of $1.18 versus the $1.11 consensus and revenue of $116.21 million, well above the $86.30 million estimate.
• The company sharply increased its dividend to $0.39 per share from $0.09, implying an annualized payout of $1.56 and a 9.4% yield.
• ASC shares rose 1.0% to $16.56 after the results, while analysts maintained a “Moderate Buy” consensus with a $17 average price target; institutional investors own 62.22% of the stock.

Ardmore Shipping (NYSE:ASC - Get Free Report) released its earnings results on Wednesday. The shipping company reported $1.18 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.11 by $0.07, FiscalAI reports. The business had revenue of $116.21 million during the quarter, compared to the consensus estimate of $86.30 million. Ardmore Shipping had a return on equity of 9.63% and a net margin of 18.00%.

Ardmore Shipping Trading Up 1.0%

ASC stock traded up $0.17 during trading on Wednesday, hitting $16.56. 236,603 shares of the company traded hands, compared to its average volume of 684,110. The company has a 50-day moving average of $16.43 and a 200-day moving average of $15.51. The company has a debt-to-equity ratio of 0.16, a quick ratio of 4.43 and a current ratio of 4.87. Ardmore Shipping has a 1 year low of $10.17 and a 1 year high of $20.02. The firm has a market capitalization of $674.53 million, a PE ratio of 12.50 and a beta of 0.04.

Ardmore Shipping Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Friday, May 29th were given a dividend of $0.39 per share. The ex-dividend date was Friday, May 29th. This is an increase from Ardmore Shipping's previous quarterly dividend of $0.09. This represents a $1.56 dividend on an annualized basis and a yield of 9.4%. Ardmore Shipping's dividend payout ratio (DPR) is 117.29%.

Insider Transactions at Ardmore Shipping

In related news, Director Kirsi Tikka sold 12,000 shares of the business's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $18.93, for a total transaction of $227,160.00. Following the transaction, the director owned 35,471 shares in the company, valued at $671,466.03. The trade was a 25.28% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, President Bart B. Kelleher sold 8,000 shares of the stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $19.07, for a total value of $152,560.00. Following the completion of the sale, the president owned 60,039 shares of the company's stock, valued at approximately $1,144,943.73. This trade represents a 11.76% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 40,000 shares of company stock worth $766,048.

Institutional Trading of Ardmore Shipping

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ASC. AQR Capital Management LLC increased its position in Ardmore Shipping by 31.2% during the 1st quarter. AQR Capital Management LLC now owns 77,769 shares of the shipping company's stock valued at $761,000 after purchasing an additional 18,500 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Ardmore Shipping by 4.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 24,701 shares of the shipping company's stock worth $242,000 after buying an additional 1,102 shares in the last quarter. Empowered Funds LLC lifted its holdings in Ardmore Shipping by 7.5% in the first quarter. Empowered Funds LLC now owns 234,987 shares of the shipping company's stock worth $2,301,000 after buying an additional 16,458 shares during the period. JPMorgan Chase & Co. raised its position in shares of Ardmore Shipping by 23.1% in the 2nd quarter. JPMorgan Chase & Co. now owns 311,162 shares of the shipping company's stock worth $2,987,000 after acquiring an additional 58,330 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its position in shares of Ardmore Shipping by 1,689.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 8,444 shares of the shipping company's stock worth $81,000 after purchasing an additional 7,972 shares in the last quarter. Hedge funds and other institutional investors own 62.22% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on ASC shares. Weiss Ratings reissued a "hold (c)" rating on shares of Ardmore Shipping in a report on Tuesday, July 7th. Wall Street Zen upgraded shares of Ardmore Shipping from a "buy" rating to a "strong-buy" rating in a research note on Saturday, May 9th. Finally, Evercore set a $19.00 target price on Ardmore Shipping in a research note on Tuesday, April 21st. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $17.00.

Ardmore Shipping Company Profile

Ardmore Shipping Corporation is a Bermuda-based provider of seaborne transportation services for refined petroleum products. The company owns and operates a modern fleet of product tankers, including medium-range (MR), long-range 2 (LR2) and Aframax vessels. Ardmore Shipping focuses on the ocean carriage of clean and dirty petroleum products under time charters, bareboat charters and spot voyages, serving a diverse customer base that includes major oil companies and trading houses.

Since its founding in 2005, Ardmore Shipping has grown its fleet through newbuilding contracts, second-hand acquisitions and fleet renewals, aiming to maintain a high quality, fuel-efficient profile.

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