Global Ship Lease (NYSE:GSL) Hits New 52-Week High After Better-Than-Expected Earnings

Key Points

• Global Ship Lease reached a new 52-week high of $29.67 after reporting earnings of $2.67 per share, significantly exceeding the expected $2.15.
• The company announced a dividend increase from $0.45 to $0.525 per share, offering a 7.1% yield and reflecting a payout ratio of 19.83%.
• Institutional investors control around 50.08% of the stock, with multiple firms increasing their stakes, including a 244% boost by Commons Capital LLC.

Global Ship Lease, Inc. (NYSE:GSL - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $29.67 and last traded at $29.46, with a volume of 103420 shares trading hands. The stock had previously closed at $28.59.

The shipping company reported $2.67 earnings per share for the quarter, topping the consensus estimate of $2.15 by $0.52. Global Ship Lease had a net margin of 53.31% and a return on equity of 25.56%.

Global Ship Lease Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 3rd. Stockholders of record on Friday, May 23rd were paid a $0.525 dividend. This is a boost from Global Ship Lease's previous quarterly dividend of $0.45. The ex-dividend date was Friday, May 23rd. This represents a $2.10 annualized dividend and a dividend yield of 7.1%. Global Ship Lease's dividend payout ratio (DPR) is currently 19.83%.

Analyst Ratings Changes

A number of equities research analysts have commented on GSL shares. Clarkson Capital cut shares of Global Ship Lease from a "strong-buy" rating to a "hold" rating and set a $28.00 target price on the stock. in a research note on Thursday, May 22nd. Jefferies Financial Group raised their target price on shares of Global Ship Lease from $28.00 to $30.00 and gave the company a "buy" rating in a report on Monday, May 19th. Finally, Wall Street Zen lowered shares of Global Ship Lease from a "buy" rating to a "hold" rating in a report on Saturday, July 26th.

Hedge Funds Weigh In On Global Ship Lease

A number of large investors have recently added to or reduced their stakes in the company. Y Intercept Hong Kong Ltd increased its holdings in shares of Global Ship Lease by 60.4% during the second quarter. Y Intercept Hong Kong Ltd now owns 14,347 shares of the shipping company's stock valued at $377,000 after acquiring an additional 5,402 shares in the last quarter. Commons Capital LLC boosted its position in Global Ship Lease by 244.0% in the second quarter. Commons Capital LLC now owns 86,000 shares of the shipping company's stock valued at $2,263,000 after buying an additional 61,000 shares during the last quarter. Allianz Asset Management GmbH boosted its position in Global Ship Lease by 10.1% in the 2nd quarter. Allianz Asset Management GmbH now owns 385,416 shares of the shipping company's stock worth $10,140,000 after purchasing an additional 35,205 shares in the last quarter. U S Global Investors Inc. purchased a new stake in Global Ship Lease in the 2nd quarter worth approximately $173,000. Finally, Ameritas Advisory Services LLC purchased a new stake in Global Ship Lease in the 2nd quarter worth approximately $72,000. 50.08% of the stock is currently owned by institutional investors.

Global Ship Lease Trading Up 2.8%

The company has a current ratio of 1.77, a quick ratio of 1.71 and a debt-to-equity ratio of 0.40. The firm has a market cap of $1.04 billion, a PE ratio of 2.79 and a beta of 1.21. The company has a 50-day simple moving average of $26.82 and a 200 day simple moving average of $23.76.

Global Ship Lease Company Profile

Global Ship Lease, Inc, together with its subsidiaries, engages in owning and chartering of containerships under fixed-rate charters to container shipping companies worldwide. As of March 11, 2024, it owned 68 mid-sized and smaller containerships, ranging from 2,207 to 11,040 twenty-foot equivalent unit (TEU), with an aggregate capacity of 375,406 TEU.

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