Danaos (NYSE:DAC) Trading Down 3.3% - Time to Sell?

Danaos Corporation (NYSE:DAC - Get Free Report) shares traded down 3.3% during trading on Monday . The stock traded as low as $86.15 and last traded at $86.25. 67,093 shares traded hands during trading, a decline of 36% from the average session volume of 104,603 shares. The stock had previously closed at $89.19.

Wall Street Analysts Forecast Growth

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

Danaos Price Performance

The stock has a market cap of $1.67 billion, a price-to-earnings ratio of 3.60 and a beta of 1.38. The company has a 50-day simple moving average of $83.08 and a two-hundred day simple moving average of $80.49. 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 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 company had revenue of $253.31 million during the quarter, compared to analyst estimates of $242.00 million. Danaos had a net margin of 46.33% and a return on equity of 14.66%. During the same period in the previous year, the company posted $7.15 EPS. As a group, equities research analysts forecast that Danaos Corporation will post 29.21 EPS for the current year.

Danaos Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 5th. Stockholders of record on Tuesday, May 27th were given a $0.85 dividend. This represents a $3.40 dividend on an annualized basis and a dividend yield of 3.88%. The ex-dividend date was Tuesday, May 27th. Danaos's dividend payout ratio (DPR) is presently 13.96%.

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 outstanding shares. This buyback authorization permits the shipping company to purchase up to 6.8% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Danaos

A number of institutional investors and hedge funds have recently modified their holdings of DAC. Ion Asset Management Ltd. increased its position in Danaos by 47.8% during the fourth quarter. Ion Asset Management Ltd. now owns 566,050 shares of the shipping company's stock worth $45,324,000 after buying an additional 183,050 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted 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 valued at $25,205,000 after buying an additional 48,155 shares during the last quarter. No Street GP LP boosted its stake in shares of Danaos by 11.1% during the 4th quarter. No Street GP LP now owns 250,000 shares of the shipping company's stock worth $20,018,000 after acquiring an additional 25,000 shares during the period. Voloridge Investment Management LLC boosted its stake in shares of Danaos by 20.4% during the 4th quarter. Voloridge Investment Management LLC now owns 103,937 shares of the shipping company's stock worth $8,322,000 after acquiring an additional 17,643 shares during the period. Finally, TrueMark Investments LLC increased its holdings in shares of Danaos by 252.9% during the 4th quarter. TrueMark Investments LLC now owns 65,485 shares of the shipping company's stock worth $5,243,000 after acquiring an additional 46,930 shares during the last quarter. 19.01% of the stock is owned by 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.