Traders Purchase High Volume of DHT Call Options (NYSE:DHT)

Key Points

• Unusual options activity: Investors purchased 21,238 DHT call options, 181% above the average volume of 7,545 contracts, signaling heightened bullish interest.
• Strong financial performance: DHT shares rose 2.6% to $20.71 after the company beat quarterly earnings and revenue estimates, with revenue up 174.8% year over year.
• Higher dividend and positive analyst view: DHT increased its quarterly dividend to $1.22 per share, implying a 23.6% yield, while analysts maintain a “Moderate Buy” consensus and a $19.33 price target.

DHT Holdings, Inc. (NYSE:DHT - Get Free Report) was the recipient of some unusual options trading on Friday. Investors acquired 21,238 call options on the stock. This represents an increase of 181% compared to the average volume of 7,545 call options.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on DHT. Weiss Ratings lowered DHT from a "buy (b+)" rating to a "buy (b)" rating in a research note on Monday, August 24th. Wall Street Zen raised DHT from a "buy" rating to a "strong-buy" rating in a report on Saturday, May 9th. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $19.33.

DHT Trading Up 2.6%

DHT stock traded up $0.52 during trading hours on Friday, reaching $20.71. The stock had a trading volume of 2,029,326 shares, compared to its average volume of 3,695,995. The stock has a market cap of $3.33 billion, a PE ratio of 7.05 and a beta of -0.09. DHT has a 52 week low of $10.83 and a 52 week high of $21.09. The company has a debt-to-equity ratio of 0.29, a current ratio of 3.64 and a quick ratio of 3.32. The company has a fifty day simple moving average of $18.42 and a 200-day simple moving average of $18.08.

DHT (NYSE:DHT - Get Free Report) last posted its earnings results on Wednesday, August 5th. The shipping company reported $1.22 earnings per share for the quarter, topping analysts' consensus estimates of $1.18 by $0.04. The company had revenue of $254.96 million during the quarter, compared to analyst estimates of $247.17 million. DHT had a net margin of 65.52% and a return on equity of 39.40%. DHT's revenue for the quarter was up 174.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.35 earnings per share.

DHT Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, August 24th. Investors of record on Monday, August 17th were given a dividend of $1.22 per share. This is an increase from DHT's previous quarterly dividend of $0.64. This represents a $4.88 annualized dividend and a dividend yield of 23.6%. The ex-dividend date was Monday, August 17th. DHT's dividend payout ratio is presently 165.99%.

Insider Activity

In other news, Director Jeremy Kramer sold 29,796 shares of the stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $18.65, for a total value of $555,695.40. Following the sale, the director directly owned 71,332 shares of the company's stock, valued at approximately $1,330,341.80. This represents a 29.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Laila Halvorsen sold 50,000 shares of the firm's stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $20.00, for a total transaction of $1,000,000.00. Following the completion of the transaction, the chief financial officer owned 161,011 shares of the company's stock, valued at $3,220,220. This trade represents a 23.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 528,803 shares of company stock valued at $10,644,297. 1.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On DHT

A number of institutional investors have recently bought and sold shares of DHT. EverSource Wealth Advisors LLC grew its holdings in shares of DHT by 91.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,334 shares of the shipping company's stock worth $36,000 after acquiring an additional 1,596 shares during the period. Caitong International Asset Management Co. Ltd boosted its position in shares of DHT by 568.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,554 shares of the shipping company's stock valued at $43,000 after purchasing an additional 3,022 shares in the last quarter. Western Wealth Management LLC bought a new stake in shares of DHT during the 1st quarter valued at $46,000. Leonteq Securities AG purchased a new stake in DHT in the fourth quarter worth about $59,000. Finally, Sunbelt Securities Inc. purchased a new stake in shares of DHT in the 3rd quarter worth approximately $60,000. 58.53% of the stock is owned by institutional investors.

About DHT

DHT Holdings, Inc NYSE: DHT is a Bermuda-based independent crude oil tanker company that provides seaborne transportation of crude oil on a worldwide basis. The company's core business involves the ownership and operation of a modern fleet of Very Large Crude Carriers (VLCCs) and Suezmax tankers, which are chartered to oil producers, trading houses and national oil companies. Through spot charters, time-charters and tanker pooling arrangements, DHT connects crude oil exporters with refining hubs in Asia, Europe, North America and other global markets.

Founded in 2005 and listed on the New York Stock Exchange later that year, DHT has grown its presence in the maritime sector by focusing on operational efficiency and disciplined capital management.

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