Ardmore Shipping (NYSE:ASC) Shares Climb 3.6% - Here's What Happened

Key Points

• Ardmore Shipping shares rose 3.6% to about $19.15, despite trading volume running 48% below the average session level.
• Analyst sentiment improved, with Wall Street Zen upgrading the stock to “strong buy” and Weiss Ratings moving it to “buy.” The consensus rating is “Buy,” although the average price target of $17.00 is below the current share price.
• The company reported quarterly EPS of $1.18, beating estimates, and revenue of $116.21 million. Ardmore also doubled its quarterly dividend to $0.79, producing a 16.4% annualized yield, though its payout ratio exceeds 100%.

Shares of Ardmore Shipping Corporation (NYSE:ASC - Get Free Report) rose 3.6% during trading on Thursday. The company traded as high as $19.30 and last traded at $19.1540. 347,775 shares changed hands during mid-day trading, a decline of 48% from the average session volume of 667,982 shares. The stock had previously closed at $18.48.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the stock. Wall Street Zen upgraded shares of Ardmore Shipping from a "buy" rating to a "strong-buy" rating in a research report on Saturday, September 5th. Weiss Ratings upgraded Ardmore Shipping from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, September 22nd. Three investment analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of $17.00.

Ardmore Shipping Price Performance

The firm has a market cap of $782.46 million, a P/E ratio of 7.42 and a beta of 0.11. The company has a debt-to-equity ratio of 0.05, a current ratio of 5.45 and a quick ratio of 4.84. The firm's 50 day moving average is $17.96 and its 200 day moving average is $17.03.

Ardmore Shipping (NYSE:ASC - Get Free Report) last released its earnings results on Thursday, July 30th. The shipping company reported $1.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.11 by $0.07. The firm had revenue of $116.21 million during the quarter, compared to analyst estimates 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 business also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Friday, August 28th were paid a $0.79 dividend. This is an increase from Ardmore Shipping's previous quarterly dividend of $0.39. This represents a $3.16 dividend on an annualized basis and a dividend yield of 16.4%. The ex-dividend date of this dividend was Friday, August 28th. Ardmore Shipping's payout ratio is currently 122.01%.

Hedge Funds Weigh In On Ardmore Shipping

Hedge funds have recently bought and sold shares of the company. WINTON GROUP Ltd increased its stake in Ardmore Shipping by 246.1% during the 2nd quarter. WINTON GROUP Ltd now owns 48,800 shares of the shipping company's stock valued at $684,000 after purchasing an additional 34,700 shares in the last quarter. Engineers Gate Manager LP grew its holdings in shares of Ardmore Shipping by 228.8% during the second quarter. Engineers Gate Manager LP now owns 131,362 shares of the shipping company's stock valued at $1,840,000 after buying an additional 91,411 shares during the last quarter. Navellier & Associates Inc. bought a new stake in shares of Ardmore Shipping during the second quarter valued at approximately $2,202,000. Hsbc Holdings PLC increased its position in shares of Ardmore Shipping by 9.7% during the second quarter. Hsbc Holdings PLC now owns 47,083 shares of the shipping company's stock valued at $665,000 after acquiring an additional 4,163 shares in the last quarter. Finally, Wellington Management Group LLP purchased a new position in Ardmore Shipping in the 2nd quarter worth approximately $27,780,000. Institutional investors own 62.22% of the company's stock.

About Ardmore Shipping

Ardmore Shipping Corporation NYSE: ASC is a maritime transportation company that owns and operates a fleet of product and chemical tankers. The company transports refined petroleum products, such as gasoline, diesel and jet fuel, as well as chemicals and other liquid commodities for customers involved in the energy and industrial sectors.

Ardmore's fleet primarily includes medium-range product tankers and chemical tankers designed to serve regional and international trade routes. Its vessels operate worldwide, supporting the movement of cargo between major refining, distribution and consumption markets.

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