BW LPG (NYSE:BWLP) Sees Strong Trading Volume - Should You Buy?

Key Points

• Dividend increase: BW LPG raised its quarterly dividend to $0.5652 (annualized $2.26), implying a 13.0% yield but a high payout ratio of 142.5%, which may raise sustainability concerns.
• Earnings beat: The company reported Q results of $0.69 EPS versus $0.60 expected and revenue of $732.4M versus $217.2M estimated, with a PE of 10.89 and ROE of 12.61%, suggesting stronger-than-expected performance.
• Mixed market view and recent activity: Analyst ratings range from Buy to Strong Sell with an average "Hold," while shares saw heavy trading and traded around $17.54 mid-day; market capitalization is ~$2.64 billion.

BW LPG Limited (NYSE:BWLP - Get Free Report) shares saw strong trading volume on Tuesday . 311,426 shares traded hands during mid-day trading, a decline of 25% from the previous session's volume of 415,435 shares.The stock last traded at $17.5350 and had previously closed at $16.52.

Wall Street Analyst Weigh In

Several research firms have recently commented on BWLP. Kepler Capital Markets cut BW LPG from a "strong-buy" rating to a "hold" rating in a report on Friday, March 13th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of BW LPG in a research note on Wednesday, January 21st. Dnb Carnegie lowered BW LPG from a "hold" rating to a "strong sell" rating in a research note on Wednesday, March 11th. Finally, Clarkson Capital upgraded shares of BW LPG from a "neutral" rating to a "buy" rating in a report on Wednesday, December 3rd. One investment analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold".

BW LPG Stock Performance

The stock has a market capitalization of $2.64 billion and a PE ratio of 10.89. The company has a current ratio of 1.50, a quick ratio of 1.21 and a debt-to-equity ratio of 0.42. The firm's 50-day simple moving average is $16.25 and its two-hundred day simple moving average is $14.33.

BW LPG (NYSE:BWLP - Get Free Report) last announced its quarterly earnings data on Tuesday, March 3rd. The company reported $0.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.60 by $0.09. The business had revenue of $732.40 million during the quarter, compared to analyst estimates of $217.18 million. BW LPG had a return on equity of 12.61% and a net margin of 6.76%.

BW LPG Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 23rd. Investors of record on Friday, March 13th were issued a dividend of $0.5652 per share. The ex-dividend date of this dividend was Friday, March 13th. This represents a $2.26 annualized dividend and a yield of 13.0%. This is an increase from BW LPG's previous quarterly dividend of $0.40. BW LPG's payout ratio is 142.50%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of BWLP. Royal Bank of Canada grew its holdings in BW LPG by 4,137.5% during the 1st quarter. Royal Bank of Canada now owns 23,476 shares of the company's stock worth $255,000 after acquiring an additional 22,922 shares during the period. Jane Street Group LLC increased its stake in BW LPG by 14.0% during the 1st quarter. Jane Street Group LLC now owns 51,463 shares of the company's stock worth $558,000 after purchasing an additional 6,331 shares in the last quarter. JPMorgan Chase & Co. lifted its position in BW LPG by 26.2% in the 2nd quarter. JPMorgan Chase & Co. now owns 8,435 shares of the company's stock valued at $100,000 after acquiring an additional 1,749 shares in the last quarter. Legal & General Group Plc raised its position in BW LPG by 11.2% in the 2nd quarter. Legal & General Group Plc now owns 117,180 shares of the company's stock valued at $1,381,000 after buying an additional 11,831 shares during the last quarter. Finally, Quantbot Technologies LP acquired a new position in shares of BW LPG during the 2nd quarter worth about $98,000.

BW LPG Company Profile

BW LPG NYSE: BWLP is a pure‐play owner and operator of liquefied petroleum gas (LPG) carriers. The company's core business centers on the maritime transportation of LPG, predominantly propane and butane, under both time‐ and voyage‐charter arrangements. Its fleet comprises pressurized and semi‐refrigerated vessels designed to meet the specific requirements of LPG producers, traders and end‐users around the world.

Headquartered in Singapore, BW LPG serves a global customer base, with commercial offices in key energy hubs including Houston, London, Dubai and Tokyo.

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