Ardmore Shipping (NYSE:ASC) Hits New 52-Week High - Should You Buy?

Key Points

• Ardmore Shipping reached a new 52-week high, trading as high as $20.68 and up 3.3%, giving the company a market capitalization of approximately $843 million.
• Analysts are broadly positive, with three Buy ratings and a consensus price target of $17. However, the stock is trading above that target following stronger-than-expected quarterly results of $1.18 in earnings per share and $116.21 million in revenue.
• The company doubled its quarterly dividend to $0.79 per share, implying a 15.3% annualized yield, though its 122% payout ratio may raise sustainability concerns. Institutional investors own 62.22% of the shares.

Ardmore Shipping Corporation (NYSE:ASC - Get Free Report)'s stock price hit a new 52-week high on Monday. The stock traded as high as $20.68 and last traded at $20.63, with a volume of 117,341 shares trading hands. The stock had previously closed at $20.03.

Analyst Upgrades and Downgrades

ASC has been the topic of a number of recent analyst reports. Wall Street Zen upgraded shares of Ardmore Shipping from a "buy" rating to a "strong-buy" rating in a research note on Saturday, September 5th. Weiss Ratings upgraded shares of Ardmore Shipping from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, September 22nd. Three equities research analysts have rated the stock with a Buy rating. Based on data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus price target of $17.00.

Ardmore Shipping Trading Up 3.3%

The company has a market cap of $842.91 million, a price-to-earnings ratio of 7.99 and a beta of 0.11. The business has a fifty day simple moving average of $18.53 and a 200 day simple moving average of $17.37. The company has a quick ratio of 4.84, a current ratio of 5.45 and a debt-to-equity ratio of 0.05.

Ardmore Shipping (NYSE:ASC - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The shipping company reported $1.18 earnings per share for the quarter, topping analysts' consensus estimates of $1.11 by $0.07. The business had revenue of $116.21 million for the quarter, compared to analysts' expectations of $86.30 million. Ardmore Shipping had a net margin of 29.67% and a return on equity of 15.24%.

Ardmore Shipping Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Friday, August 28th were paid a dividend of $0.79 per share. This is a positive change from Ardmore Shipping's previous quarterly dividend of $0.39. The ex-dividend date of this dividend was Friday, August 28th. This represents a $3.16 annualized dividend and a dividend yield of 15.3%. Ardmore Shipping's dividend payout ratio is presently 122.01%.

Institutional Investors Weigh In On Ardmore Shipping

A number of institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. purchased a new position in Ardmore Shipping during the second quarter worth approximately $53,878,000. Wellington Management Group LLP purchased a new stake in shares of Ardmore Shipping during the 2nd quarter valued at $27,780,000. Flat Footed LLC purchased a new stake in shares of Ardmore Shipping during the 2nd quarter valued at $13,293,599. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of Ardmore Shipping during the 2nd quarter valued at $7,615,000. Finally, Renaissance Technologies LLC increased its holdings in shares of Ardmore Shipping by 18.1% during the 1st quarter. Renaissance Technologies LLC now owns 1,736,632 shares of the shipping company's stock worth $26,484,000 after buying an additional 266,275 shares during the last quarter. Institutional investors and hedge funds own 62.22% of the company's stock.

Ardmore Shipping Company Profile

Ardmore Shipping Corporation NYSE: ASC is a maritime transportation company that owns and operates a fleet of product and chemical tankers. The company provides seaborne transportation services for refined petroleum products, such as gasoline, diesel and jet fuel, as well as certain chemicals and other liquid cargoes.

Ardmore's vessels primarily serve international trade routes, transporting cargoes between major energy and industrial markets. Its operations include commercial management, chartering and technical management of its fleet, with an emphasis on safe, efficient and environmentally responsible maritime transportation.

Founded in 2010, Ardmore Shipping is headquartered in Hamilton, Bermuda.

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