Ardmore Shipping (NYSE:ASC) Trading Up 6.9% - Here's Why

Key Points

• Ardmore Shipping shares rose 6.9% on Friday, trading as high as $16.36 after closing at $15.32, with volume below its average session level.
• The company’s recent earnings topped expectations, posting EPS of $0.58 versus the $0.51 consensus and revenue of $87.92 million versus the expected $58.08 million.
• Ardmore also raised its quarterly dividend sharply to $0.39 per share from $0.09, implying a 9.5% annualized yield, while analysts currently rate the stock a Moderate Buy with a $17.00 consensus target.

Ardmore Shipping Corporation (NYSE:ASC - Get Free Report) shares shot up 6.9% during trading on Friday . The company traded as high as $16.36 and last traded at $16.37. Approximately 540,718 shares traded hands during trading, a decline of 23% from the average session volume of 699,258 shares. The stock had previously closed at $15.32.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on ASC shares. Weiss Ratings reiterated a "hold (c)" rating on shares of Ardmore Shipping in a report on Tuesday. Wall Street Zen upgraded Ardmore Shipping from a "buy" rating to a "strong-buy" rating in a research report 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 assigned a Hold rating to the company's stock. According to data from MarketBeat, Ardmore Shipping presently has an average rating of "Moderate Buy" and a consensus target price of $17.00.

Ardmore Shipping Stock Up 6.9%

The firm's fifty day moving average price is $17.12 and its two-hundred day moving average price is $15.02. The stock has a market cap of $667.16 million, a price-to-earnings ratio of 12.32 and a beta of 0.04. The company has a debt-to-equity ratio of 0.16, a current ratio of 4.87 and a quick ratio of 4.43.

Ardmore Shipping (NYSE:ASC - Get Free Report) last issued its earnings results on Thursday, May 7th. The shipping company reported $0.58 EPS for the quarter, beating the consensus estimate of $0.51 by $0.07. Ardmore Shipping had a return on equity of 9.63% and a net margin of 18.00%.The company had revenue of $87.92 million during the quarter, compared to the consensus estimate of $58.08 million.

Ardmore Shipping Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Friday, May 29th were paid a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a yield of 9.5%. This is a boost from Ardmore Shipping's previous quarterly dividend of $0.09. The ex-dividend date of this dividend was Friday, May 29th. Ardmore Shipping's payout ratio is 117.29%.

Insider Activity

In related news, President Bart B. Kelleher sold 8,000 shares of Ardmore Shipping stock in a transaction on Tuesday, May 5th. The shares were 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 transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Curtis B. Mcwilliams sold 16,277 shares of the business's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $19.38, for a total transaction of $315,448.26. Following the sale, the director owned 60,673 shares of the company's stock, valued at $1,175,842.74. This trade represents a 21.15% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 40,000 shares of company stock worth $766,048 over the last quarter.

Institutional Investors Weigh In On Ardmore Shipping

Several hedge funds and other institutional investors have recently made changes to their positions in ASC. Dimensional Fund Advisors LP boosted its stake in Ardmore Shipping by 1.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,452,462 shares of the shipping company's stock valued at $37,399,000 after purchasing an additional 24,244 shares during the last quarter. Renaissance Technologies LLC raised its stake in shares of Ardmore Shipping by 18.1% in the first quarter. Renaissance Technologies LLC now owns 1,736,632 shares of the shipping company's stock worth $26,484,000 after purchasing an additional 266,275 shares during the last quarter. Wellington Management Group LLP lifted its holdings in shares of Ardmore Shipping by 1.3% in the third quarter. Wellington Management Group LLP now owns 1,298,294 shares of the shipping company's stock valued at $15,411,000 after purchasing an additional 16,524 shares in the last quarter. Ticino Wealth bought a new position in shares of Ardmore Shipping in the fourth quarter valued at approximately $7,647,000. Finally, Qube Research & Technologies Ltd boosted its position in shares of Ardmore Shipping by 7.0% during the second quarter. Qube Research & Technologies Ltd now owns 496,757 shares of the shipping company's stock valued at $4,769,000 after buying an additional 32,347 shares during the last quarter. 62.22% of the stock is owned by institutional investors.

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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