Danaos (NYSE:DAC) Hits New 1-Year High - Should You Buy?

Key Points

• Danaos reached a new 52-week high of $142, while analysts maintain a consensus “Buy” rating. However, the $105 consensus price target is well below the current share price.
• The company exceeded quarterly expectations, reporting $6.72 in EPS versus $5.86 expected and revenue of $253.7 million versus $242.2 million forecast.
• Danaos declared a quarterly dividend of $0.90 per share, equivalent to a 2.6% annualized yield, while hedge funds and institutional investors own approximately 19% of the stock.

Danaos Corporation (NYSE:DAC - Get Free Report) reached a new 52-week high on Wednesday . The stock traded as high as $142.00 and last traded at $140.4090, with a volume of 424 shares changing hands. The stock had previously closed at $140.41.

Analyst Ratings Changes

A number of brokerages recently issued reports on DAC. Weiss Ratings upgraded Danaos from a "buy (b)" rating to a "buy (b+)" rating in a research report on Tuesday, July 14th. Fearnley Fonds upgraded shares of Danaos from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $105.00.

Danaos Trading Down 1.3%

The company's 50 day simple moving average is $128.78 and its 200-day simple moving average is $118.31. The firm has a market cap of $2.52 billion, a P/E ratio of 4.92 and a beta of 0.89. The company has a quick ratio of 8.40, a current ratio of 8.66 and a debt-to-equity ratio of 0.26.

Danaos (NYSE:DAC - Get Free Report) last released its earnings results on Monday, May 11th. The shipping company reported $6.72 EPS for the quarter, beating analysts' consensus estimates of $5.86 by $0.86. Danaos had a return on equity of 13.18% and a net margin of 49.85%.The firm had revenue of $253.70 million for the quarter, compared to analysts' expectations of $242.20 million.

Danaos Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, July 30th. Investors of record on Tuesday, July 21st will be issued a dividend of $0.90 per share. The ex-dividend date is Tuesday, July 21st. This represents a $3.60 dividend on an annualized basis and a yield of 2.6%. Danaos's payout ratio is presently 12.70%.

Institutional Trading of Danaos

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. ION Fund Management Ltd bought a new stake in shares of Danaos during the fourth quarter worth $39,538,000. Ion Asset Management Ltd. grew its holdings in shares of Danaos by 15.5% in the second quarter. Ion Asset Management Ltd. now owns 654,308 shares of the shipping company's stock worth $56,428,000 after purchasing an additional 87,614 shares during the last quarter. Millennium Management LLC grew its holdings in shares of Danaos by 161.8% in the third quarter. Millennium Management LLC now owns 133,401 shares of the shipping company's stock worth $11,981,000 after purchasing an additional 82,450 shares during the last quarter. Renaissance Technologies LLC increased its stake in Danaos by 117.1% in the 1st quarter. Renaissance Technologies LLC now owns 83,800 shares of the shipping company's stock worth $9,439,000 after buying an additional 45,200 shares during the period. Finally, Goldman Sachs Group Inc. increased its stake in Danaos by 58.0% in the 4th quarter. Goldman Sachs Group Inc. now owns 106,089 shares of the shipping company's stock worth $9,991,000 after buying an additional 38,958 shares during the period. Hedge funds and other institutional investors own 19.01% of the company's stock.

About Danaos

Danaos Corporation is a leading independent owner and manager of containerships, specializing in long-term charters of modern vessels to major liner companies worldwide. The company's core services include vessel acquisition and sale, technical and crew management, and commercial chartering, all aimed at supporting global containerized trade. Danaos leverages its in-house expertise in operations, maintenance and regulatory compliance to ensure reliable and efficient fleet performance.

Founded in 1972 by Dr.

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