Ardmore Shipping (NYSE:ASC) Shares Down 4.6% - Here's What Happened

Key Points

• Ardmore Shipping shares fell 4.6% to about $17.16 in Wednesday trading, with volume down 69% from the average. Analysts’ consensus remains “Moderate Buy,” with a $17.00 price target.
• The company reported quarterly earnings of $1.18 per share, exceeding the $1.11 consensus estimate, while revenue of $116.21 million also surpassed expectations.
• Ardmore increased its quarterly dividend to $0.79 per share, or $3.16 annualized, representing an unusually high 18.4% yield; institutional investors own 62.22% of the stock.

Ardmore Shipping Corporation (NYSE:ASC - Get Free Report) dropped 4.6% during trading on Wednesday . The stock traded as low as $17.26 and last traded at $17.1630. Approximately 205,351 shares traded hands during mid-day trading, a decline of 69% from the average daily volume of 671,354 shares. The stock had previously closed at $17.99.

Analysts Set New Price Targets

ASC has been the subject of a number of research analyst reports. Wall Street Zen lowered Ardmore Shipping from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 1st. Weiss Ratings downgraded shares of Ardmore Shipping from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, August 19th. Two research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $17.00.

Ardmore Shipping Price Performance

The stock's 50-day moving average price is $16.51 and its 200 day moving average price is $16.25. The firm has a market cap of $699.54 million, a price-to-earnings ratio of 6.61 and a beta of 0.03. 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 released its 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. Ardmore Shipping had a return on equity of 15.24% and a net margin of 29.67%.The business had revenue of $116.21 million for the quarter, compared to the consensus estimate of $86.30 million.

Ardmore Shipping Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Friday, August 28th will be given a $0.79 dividend. The ex-dividend date is Friday, August 28th. This represents a $3.16 dividend on an annualized basis and a dividend yield of 18.4%. This is an increase from Ardmore Shipping's previous quarterly dividend of $0.39. Ardmore Shipping's dividend payout ratio is 60.23%.

Institutional Trading of Ardmore Shipping

A number of institutional investors and hedge funds have recently modified their holdings of ASC. California State Teachers Retirement System raised its stake in shares of Ardmore Shipping by 263.2% in the second quarter. California State Teachers Retirement System now owns 6,781 shares of the shipping company's stock valued at $95,000 after purchasing an additional 4,914 shares in the last quarter. Navellier & Associates Inc. acquired a new stake in Ardmore Shipping during the second quarter worth $2,202,000. Hsbc Holdings PLC increased its holdings in Ardmore Shipping by 9.7% in the 2nd quarter. Hsbc Holdings PLC now owns 47,083 shares of the shipping company's stock valued at $665,000 after buying an additional 4,163 shares during the period. Wellington Management Group LLP bought a new stake in Ardmore Shipping in the 2nd quarter valued at $27,780,000. Finally, Empowered Funds LLC acquired a new position in shares of Ardmore Shipping in the 2nd quarter valued at $2,994,000. 62.22% of the stock is currently owned by institutional investors.

About Ardmore Shipping

Ardmore Shipping Corporation is a Bermuda-based provider of seaborne transportation services for refined petroleum products. The company owns and operates a modern fleet of product tankers, including medium-range (MR), long-range 2 (LR2) and Aframax vessels. Ardmore Shipping focuses on the ocean carriage of clean and dirty petroleum products under time charters, bareboat charters and spot voyages, serving a diverse customer base that includes major oil companies and trading houses.

Since its founding in 2005, Ardmore Shipping has grown its fleet through newbuilding contracts, second-hand acquisitions and fleet renewals, aiming to maintain a high quality, fuel-efficient profile.

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