Danaos (NYSE:DAC) Sets New 12-Month High Following Dividend Announcement

Key Points

• Danaos Corporation shares reached a new 52-week high of $95.65 following the announcement of a dividend of $0.85 per share, scheduled to be paid on August 28th.
• The company reported quarterly earnings of $6.36 per share, which fell short of the $6.52 consensus estimate, but exceeded revenue expectations with $262.15 million for the quarter.
• In recent brokerage activity, Jefferies Financial Group reaffirmed a "buy" rating with a price target of $105.00, while Wall Street Zen downgraded the stock from "buy" to "hold."

Danaos Corporation (NYSE:DAC - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday following a dividend announcement from the company. The company traded as high as $94.80 and last traded at $95.65, with a volume of 13510 shares changing hands. The stock had previously closed at $92.82.

The newly announced dividend which will be paid on Thursday, August 28th. Stockholders of record on Tuesday, August 19th will be paid a $0.85 dividend. The ex-dividend date of this dividend is Tuesday, August 19th. This represents a $3.40 annualized dividend and a dividend yield of 3.6%. Danaos's payout ratio is currently 14.02%.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the stock. Jefferies Financial Group reaffirmed a "buy" rating and issued a $105.00 price objective on shares of Danaos in a research note on Tuesday. Wall Street Zen cut shares of Danaos from a "buy" rating to a "hold" rating in a research note on Wednesday, May 14th.

Danaos Price Performance

The company's 50 day moving average price is $88.82 and its 200-day moving average price is $83.07. The company has a market cap of $1.80 billion, a price-to-earnings ratio of 3.90 and a beta of 1.42. The company has a debt-to-equity ratio of 0.20, a quick ratio of 4.18 and a current ratio of 5.36.

Danaos (NYSE:DAC - Get Free Report) last released its earnings results on Monday, August 4th. The shipping company reported $6.36 earnings per share for the quarter, missing the consensus estimate of $6.52 by ($0.16). The firm had revenue of $262.15 million during the quarter, compared to analysts' expectations of $247.26 million. Danaos had a return on equity of 13.88% and a net margin of 44.62%. On average, equities research analysts forecast that Danaos Corporation will post 29.21 earnings per share for the current fiscal year.

Danaos declared that its board has authorized a stock repurchase program on Monday, April 14th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the shipping company to purchase up to 6.8% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in DAC. LPL Financial LLC increased its position in shares of Danaos by 19.0% in the fourth quarter. LPL Financial LLC now owns 3,995 shares of the shipping company's stock worth $320,000 after acquiring an additional 637 shares in the last quarter. 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 acquiring an additional 21,430 shares in the last quarter. Wells Fargo & Company MN increased its position in shares of Danaos by 31.5% in the fourth quarter. Wells Fargo & Company MN now owns 28,382 shares of the shipping company's stock worth $2,273,000 after acquiring an additional 6,804 shares in the last quarter. XTX Topco Ltd boosted its holdings in shares of Danaos by 128.1% during the fourth quarter. XTX Topco Ltd now owns 9,226 shares of the shipping company's stock worth $739,000 after purchasing an additional 5,182 shares during the period. Finally, Advisory Research Inc. grew its position in Danaos by 0.9% during the fourth quarter. Advisory Research Inc. now owns 23,116 shares of the shipping company's stock valued at $1,851,000 after purchasing an additional 207 shares in the last quarter. 19.01% of the stock is owned by hedge funds and other institutional investors.

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.