BW LPG (NYSE:BWLP) Shares Gap Down - Here's Why

Key Points

• BW LPG shares fell at Monday’s open, dropping from a prior close of $21.83 to $20.86 before recovering to $21.27 in trading.
• Analyst sentiment remains broadly positive: three analysts rate the stock Buy and two rate it Hold, producing a consensus “Moderate Buy” rating despite one recent downgrade.
• The company reported $1.08 in quarterly EPS and $838.89 million in revenue, while announcing a sharply increased quarterly dividend of $6.196 per share—an unusually high annualized yield of 116.7% and a payout ratio above 100%.

BW LPG Limited (NYSE:BWLP - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $21.83, but opened at $20.86. BW LPG shares last traded at $21.27, with a volume of 47,366 shares traded.

Analyst Ratings Changes

Several brokerages have recently commented on BWLP. Wall Street Zen upgraded BW LPG from a "buy" rating to a "strong-buy" rating in a research note on Monday, July 20th. Kepler Capital Markets raised shares of BW LPG from a "hold" rating to a "buy" rating in a research note on Tuesday, April 28th. Weiss Ratings upgraded shares of BW LPG from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, July 15th. Pareto Securities downgraded shares of BW LPG from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 16th. Finally, Dnb Carnegie upgraded shares of BW LPG from a "strong sell" rating to a "hold" rating in a report on Monday, May 18th. Three research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy".

BW LPG Price Performance

The company has a current ratio of 1.47, a quick ratio of 1.29 and a debt-to-equity ratio of 0.36. The firm has a market cap of $3.21 billion, a P/E ratio of 8.91 and a beta of 1.29. The firm has a 50-day simple moving average of $20.10 and a 200-day simple moving average of $18.03.

BW LPG (NYSE:BWLP - Get Free Report) last announced its quarterly earnings results on Friday, May 15th. The company reported $1.08 earnings per share (EPS) for the quarter. The business had revenue of $838.89 million for the quarter. BW LPG had a return on equity of 18.51% and a net margin of 10.13%.

BW LPG Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 23rd. Investors of record on Friday, June 12th were given a dividend of $6.196 per share. The ex-dividend date of this dividend was Friday, June 12th. This is an increase from BW LPG's previous quarterly dividend of $0.57. This represents a $24.78 dividend on an annualized basis and a yield of 116.7%. BW LPG's dividend payout ratio is 112.61%.

Hedge Funds Weigh In On BW LPG

A number of large investors have recently added to or reduced their stakes in BWLP. Advisory Services Network LLC purchased a new stake in shares of BW LPG during the third quarter valued at about $36,000. Global Retirement Partners LLC purchased a new position in shares of BW LPG in the 4th quarter worth approximately $43,000. Raymond James Financial Inc. bought a new position in shares of BW LPG during the 2nd quarter worth approximately $47,000. BNP Paribas Financial Markets purchased a new stake in BW LPG during the third quarter valued at approximately $62,000. Finally, Blue Trust Inc. purchased a new stake in BW LPG during the first quarter valued at approximately $65,000.

About BW LPG

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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