Bastion Asset Management Inc. Lowers Holdings in Danaos Corporation (NYSE:DAC)

Key Points

• Bastion Asset Management Inc. reduced its stake in Danaos Corporation by 45.4% in the 1st quarter, owning 24,908 shares worth approximately $2,015,000 as of its latest SEC filing.
• Danaos announced a $100 million stock buyback plan, allowing the company to repurchase up to 6.8% of its shares, reflecting the board's belief that the stock is undervalued.
• The company recently reported earnings of $6.04 per share, missing estimates, while also declaring a quarterly dividend of $0.85 per share, which yields 3.69% annually.

Bastion Asset Management Inc. trimmed its position in Danaos Corporation (NYSE:DAC - Free Report) by 45.4% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 24,908 shares of the shipping company's stock after selling 20,723 shares during the quarter. Bastion Asset Management Inc. owned approximately 0.13% of Danaos worth $2,015,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. GAMMA Investing LLC lifted its holdings in shares of Danaos by 7,700.0% in 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 in the last quarter. Summit Securities Group LLC purchased a new stake in Danaos in the fourth quarter valued at approximately $32,000. New Age Alpha Advisors LLC purchased a new stake in Danaos in the fourth quarter valued at approximately $87,000. Malaga Cove Capital LLC purchased a new stake in Danaos in the fourth quarter valued at approximately $288,000. Finally, Millburn Ridgefield LLC DE purchased a new stake in Danaos in the first quarter valued at approximately $293,000. 19.01% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities 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 note on Wednesday, May 14th. Wall Street Zen downgraded shares of Danaos from a "buy" rating to a "hold" rating in a research note on Wednesday, May 14th.

Danaos Price Performance

NYSE DAC traded down $0.83 on Wednesday, reaching $93.16. 26,968 shares of the company's stock traded hands, compared to its average volume of 95,377. Danaos Corporation has a 12 month low of $65.40 and a 12 month high of $94.00. 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 stock has a 50-day simple moving average of $87.44 and a 200 day simple moving average of $82.29. The stock has a market cap of $1.77 billion, a PE ratio of 3.82 and a beta of 1.36.

Danaos (NYSE:DAC - Get Free Report) last issued its quarterly earnings results 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 net margin of 46.33% and a return on equity of 14.66%. The business had revenue of $253.31 million for the quarter, compared to the consensus estimate of $242.00 million. During the same quarter in the previous year, the business earned $7.15 earnings per share. As a group, research analysts predict that Danaos Corporation will post 29.21 earnings per share for the current year.

Danaos Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, June 5th. Stockholders of record on Tuesday, May 27th were issued a $0.85 dividend. This represents a $3.40 annualized dividend and a dividend yield of 3.65%. The ex-dividend date was Tuesday, May 27th. Danaos's dividend payout ratio is 13.96%.

Danaos declared that its Board of Directors has initiated 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 reacquire up to 6.8% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board believes its shares are undervalued.

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.