Danaos (NYSE:DAC) Hits New 52-Week High - Still a Buy?

Key Points

• Danaos Corporation's stock reached a new 52-week high at $93.98, closing at $93.87, with notable trading volume.
• Analyst ratings were mixed, with Jefferies raising their price target to $105.00 while Wall Street Zen downgraded the stock from "buy" to "hold."
• The company recently announced a quarterly dividend of $0.85 per share and a share buyback program worth $100 million, indicating confidence in its stock value.

Danaos Corporation (NYSE:DAC - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $93.98 and last traded at $93.87, with a volume of 50439 shares trading hands. The stock had previously closed at $93.20.

Analyst Upgrades and Downgrades

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

Danaos Trading Down 0.6%

The company has a quick ratio of 4.18, a current ratio of 4.34 and a debt-to-equity ratio of 0.21. The stock's fifty day moving average price is $87.75 and its two-hundred day moving average price is $82.45. The company has a market capitalization of $1.73 billion, a PE ratio of 3.74 and a beta of 1.36.

Danaos (NYSE:DAC - Get Free Report) last issued its quarterly earnings data on Tuesday, May 13th. The shipping company reported $6.04 EPS for the quarter, missing the consensus estimate of $6.33 by ($0.29). Danaos had a return on equity of 14.66% and a net margin of 46.33%. The company had revenue of $253.31 million during the quarter, compared to analysts' expectations of $242.00 million. During the same quarter last year, the business earned $7.15 earnings per share. Sell-side analysts anticipate that Danaos Corporation will post 29.21 earnings per share for the current year.

Danaos Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 5th. Shareholders of record on Tuesday, May 27th were issued a $0.85 dividend. The ex-dividend date was Tuesday, May 27th. This represents a $3.40 annualized dividend and a yield of 3.7%. Danaos's dividend payout ratio (DPR) is 13.96%.

Danaos announced that its Board of Directors has approved a stock buyback program on Monday, April 14th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the shipping company to repurchase up to 6.8% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board of directors believes its stock is undervalued.

Institutional Trading of Danaos

Several institutional investors and hedge funds have recently bought and sold shares of the stock. GAMMA Investing LLC increased its position in shares of Danaos by 7,700.0% during the first quarter. GAMMA Investing LLC now owns 390 shares of the shipping company's stock valued at $30,000 after acquiring an additional 385 shares in the last quarter. New Age Alpha Advisors LLC bought a new stake in shares of Danaos during the fourth quarter valued at approximately $87,000. Vanguard Personalized Indexing Management LLC bought a new stake in shares of Danaos during the second quarter valued at approximately $222,000. Cubist Systematic Strategies LLC bought a new stake in shares of Danaos during the first quarter valued at approximately $223,000. Finally, Y Intercept Hong Kong Ltd bought a new stake in shares of Danaos during the second quarter valued at approximately $264,000. 19.01% of the stock is currently owned by hedge funds and other institutional investors.

About Danaos

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.