Danaos (NYSE:DAC) Shares Cross Above Two Hundred Day Moving Average - What's Next?

Key Points

• Danaos Corporation's share price has increased, crossing above its 200-day moving average of $83.07, reaching a high of $96.40 during trading.
• Analysts have mixed sentiments, with Jefferies Financial Group maintaining a "buy" rating with a target of $105, while Wall Street Zen downgraded it to "hold."
• The company declared a quarterly dividend of $0.85 per share, representing an annual yield of 3.6%, and announced a $100 million share repurchase program.

Danaos Corporation (NYSE:DAC - Get Free Report)'s share price crossed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $83.07 and traded as high as $96.40. Danaos shares last traded at $94.69, with a volume of 48,075 shares trading hands.

Wall Street Analyst Weigh In

Several analysts have commented on DAC shares. Jefferies Financial Group reiterated a "buy" rating and set a $105.00 target price on shares of Danaos in a research report on Tuesday, August 5th. Wall Street Zen cut shares of Danaos from a "buy" rating to a "hold" rating in a research report on Wednesday, May 14th.

Danaos Stock Performance

The company has a debt-to-equity ratio of 0.20, a quick ratio of 5.21 and a current ratio of 5.36. The stock's 50-day moving average is $89.00 and its 200 day moving average is $83.27. The firm has a market cap of $1.80 billion, a P/E ratio of 3.90 and a beta of 1.42.

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

Danaos Dividend Announcement

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

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. GAMMA Investing LLC boosted 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 worth $30,000 after buying an additional 385 shares during the period. Assetmark Inc. boosted its position in shares of Danaos by 15,500.0% during the second quarter. Assetmark Inc. now owns 468 shares of the shipping company's stock worth $40,000 after buying an additional 465 shares during the period. TD Waterhouse Canada Inc. acquired a new position in shares of Danaos during the second quarter worth about $107,000. Vanguard Personalized Indexing Management LLC acquired a new position in shares of Danaos during the second quarter worth about $222,000. Finally, Cubist Systematic Strategies LLC acquired a new position in shares of Danaos during the first quarter worth about $223,000. 19.01% of the stock is owned by institutional investors and hedge funds.

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.