Danaos (NYSE:DAC) Shares Cross Above 200-Day Moving Average - What's Next?

Key Points

• Danaos Corporation's stock price has surpassed its two hundred day moving average, trading at $92.24 after hitting a high of $92.50.
• Jefferies Financial Group raised their price target for the stock to $105.00, while Wall Street Zen downgraded it from a "buy" to a "hold" rating.
• The company recently declared a quarterly dividend of $0.85 per share, translating to an annual yield of 3.69%, and has initiated a $100 million share buyback plan.

Danaos Corporation (NYSE:DAC - Get Free Report)'s share price crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $81.99 and traded as high as $92.50. Danaos shares last traded at $92.24, with a volume of 33,140 shares changing hands.

Analyst Ratings Changes

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

Danaos Stock Up 0.4%

The stock has a market capitalization of $1.76 billion, a P/E ratio of 3.80 and a beta of 1.36. The company's 50-day moving average price is $87.13 and its 200 day moving average price is $82.10. The company has a debt-to-equity ratio of 0.21, a quick ratio of 4.18 and a current ratio of 4.34.

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 analysts' consensus estimates of $6.33 by ($0.29). Danaos had a return on equity of 14.66% and a net margin of 46.33%. The business had revenue of $253.31 million during the quarter, compared to analysts' expectations of $242.00 million. During the same period in the previous year, the business earned $7.15 earnings per share. As a group, equities analysts expect that Danaos Corporation will post 29.21 earnings per share for the current year.

Danaos Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 5th. Stockholders of record on Tuesday, May 27th were issued a $0.85 dividend. The ex-dividend date of this dividend was Tuesday, May 27th. This represents a $3.40 annualized dividend and a dividend yield of 3.67%. Danaos's dividend payout ratio is currently 13.96%.

Danaos announced that its board has approved a stock repurchase plan on Monday, April 14th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the shipping company to buy up to 6.8% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Institutional Investors Weigh In On Danaos

Several large investors have recently modified their holdings of the business. GAMMA Investing LLC grew its position in shares of Danaos by 7,700.0% in the 1st 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 last quarter. Northern Trust Corp boosted its holdings in shares of Danaos by 103.1% in the 4th quarter. Northern Trust Corp now owns 5,060 shares of the shipping company's stock valued at $405,000 after acquiring an additional 2,569 shares during the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of Danaos by 71.8% in the 4th quarter. JPMorgan Chase & Co. now owns 51,291 shares of the shipping company's stock valued at $4,107,000 after acquiring an additional 21,430 shares during the last quarter. Sei Investments Co. boosted its holdings in Danaos by 12.8% during the fourth quarter. Sei Investments Co. now owns 32,629 shares of the shipping company's stock worth $2,613,000 after buying an additional 3,696 shares in the last quarter. Finally, LPL Financial LLC raised its position in Danaos by 19.0% during 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 during the period. Institutional investors own 19.01% of the company's stock.

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.