Danaos (NYSE:DAC) Hits New 1-Year High - Should You 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 on Wednesday . The company traded as high as $93.98 and last traded at $93.87, with a volume of 50439 shares. The stock had previously closed at $93.20.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. Jefferies Financial Group boosted their price target on shares of Danaos from $100.00 to $105.00 and gave the stock a "buy" rating in a report on Wednesday, May 14th. Wall Street Zen downgraded shares of Danaos from a "buy" rating to a "hold" rating in a report on Wednesday, May 14th.

Danaos Stock Performance

The firm has a market capitalization of $1.73 billion, a PE ratio of 3.74 and a beta of 1.42. The company has a debt-to-equity ratio of 0.21, a current ratio of 4.34 and a quick ratio of 4.18. The company's fifty day simple moving average is $87.88 and its 200 day simple moving average is $82.53.

Danaos (NYSE:DAC - Get Free Report) last released 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). The business had revenue of $253.31 million for the quarter, compared to analysts' expectations of $242.00 million. Danaos had a net margin of 46.33% and a return on equity of 14.66%. During the same period last year, the company earned $7.15 earnings per share. As a group, equities research analysts expect that Danaos Corporation will post 29.21 EPS for the current fiscal year.

Danaos Dividend Announcement

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

Danaos announced that its Board of Directors has authorized a stock buyback plan on Monday, April 14th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the shipping company to purchase up to 6.8% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's leadership believes its stock is undervalued.

Institutional Investors Weigh In On Danaos

Several hedge funds and other institutional investors have recently modified their holdings of DAC. Ion Asset Management Ltd. increased its position in shares of Danaos by 47.8% in the fourth quarter. Ion Asset Management Ltd. now owns 566,050 shares of the shipping company's stock worth $45,324,000 after purchasing an additional 183,050 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its position in shares of Danaos by 18.1% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 314,787 shares of the shipping company's stock worth $25,205,000 after purchasing an additional 48,155 shares during the last quarter. No Street GP LP increased its position in shares of Danaos by 11.1% in the fourth quarter. No Street GP LP now owns 250,000 shares of the shipping company's stock worth $20,018,000 after purchasing an additional 25,000 shares during the last quarter. Voloridge Investment Management LLC increased its position in shares of Danaos by 20.4% in the fourth quarter. Voloridge Investment Management LLC now owns 103,937 shares of the shipping company's stock worth $8,322,000 after purchasing an additional 17,643 shares during the last quarter. Finally, JPMorgan Chase & Co. increased its position in shares of Danaos by 71.8% in the fourth quarter. JPMorgan Chase & Co. now owns 51,291 shares of the shipping company's stock worth $4,107,000 after purchasing an additional 21,430 shares during the last quarter. 19.01% of the stock is currently owned by 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.