Danaos (NYSE:DAC) Announces Earnings Results

Key Points

• Danaos reported earnings per share (EPS) of $6.36 for the quarter, which fell short of analysts' expectations of $6.52.
• The company declared a quarterly dividend of $0.85, translating to an annualized yield of 3.7% and a payout ratio of 13.96%.
• Danaos has announced a $100 million share repurchase plan, indicating the board's belief that the stock is undervalued.

Danaos (NYSE:DAC - Get Free Report) issued its quarterly earnings data on Monday. The shipping company reported $6.36 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $6.52 by ($0.16), Zacks reports. Danaos had a return on equity of 14.66% and a net margin of 46.33%.

Danaos Stock Performance

NYSE DAC traded up $0.81 during trading on Monday, reaching $92.02. The company's stock had a trading volume of 51,578 shares, compared to its average volume of 94,774. The business's fifty day moving average price is $87.88 and its 200-day moving average price is $82.58. Danaos has a twelve month low of $65.40 and a twelve month high of $94.00. The firm has a market cap of $1.75 billion, a price-to-earnings ratio of 3.78 and a beta of 1.42. The company has a debt-to-equity ratio of 0.21, a quick ratio of 4.18 and a current ratio of 4.34.

Danaos Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 5th. Investors of record on Tuesday, May 27th were given a $0.85 dividend. The ex-dividend date of this dividend was Tuesday, May 27th. This represents a $3.40 dividend on an annualized basis and a yield of 3.7%. Danaos's payout ratio is 13.96%.

Institutional Investors Weigh In On Danaos

An institutional investor recently bought a new position in Danaos stock. Cubist Systematic Strategies LLC acquired a new position in shares of Danaos Corporation (NYSE:DAC - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 2,858 shares of the shipping company's stock, valued at approximately $223,000. 19.01% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on DAC shares. Wall Street Zen lowered Danaos from a "buy" rating to a "hold" rating in a research note on Wednesday, May 14th. Jefferies Financial Group lifted their target price on shares of Danaos from $100.00 to $105.00 and gave the stock a "buy" rating in a research note on Wednesday, May 14th.

Danaos declared that its Board of Directors has approved a share repurchase plan on Monday, April 14th that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the shipping company to purchase up to 6.8% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its stock is undervalued.

Danaos Company Profile

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.

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