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

Key Points

• Ardmore Shipping shares fell 2.9%, opening at $16.78 versus the prior close of $17.66, before trading near $17.20.
• Analysts’ consensus rating remains “Moderate Buy”, with an average price target of $17.00; recent reports included downgrades from strong buy to buy and from buy to hold.
• The company reported quarterly earnings of $1.18 per share, beating estimates, and raised its quarterly dividend to $0.79 from $0.39, implying an annualized yield of about 18.4%.

Ardmore Shipping Corporation (NYSE:ASC - Get Free Report)'s stock price gapped down prior to trading on Friday . The stock had previously closed at $17.66, but opened at $16.78. Ardmore Shipping shares last traded at $17.20, with a volume of 123,604 shares changing hands.

Analysts Set New Price Targets

A number of analysts have recently issued reports on ASC shares. Wall Street Zen lowered Ardmore Shipping from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 1st. Weiss Ratings downgraded Ardmore Shipping from a "buy (b-)" rating to a "hold (c+)" rating in a report 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 data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $17.00.

Ardmore Shipping Stock Down 2.9%

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 stock has a market capitalization of $698.52 million, a price-to-earnings ratio of 6.62 and a beta of 0.03. The firm's fifty day moving average is $16.53 and its 200-day moving average is $16.31.

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 the consensus estimate of $1.11 by $0.07. Ardmore Shipping had a net margin of 29.67% and a return on equity of 15.24%. The company had revenue of $116.21 million during the quarter, compared to the consensus estimate of $86.30 million.

Ardmore Shipping Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Friday, August 28th will be issued a $0.79 dividend. This is a positive change from Ardmore Shipping's previous quarterly dividend of $0.39. 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%. Ardmore Shipping's dividend payout ratio (DPR) is presently 60.23%.

Institutional Investors Weigh In On Ardmore Shipping

Several institutional investors and hedge funds have recently bought and sold shares of ASC. Zions Bancorporation National Association UT bought a new stake in Ardmore Shipping in the 4th quarter valued at about $25,000. Raymond James Financial Inc. bought a new position in Ardmore Shipping in the 2nd quarter worth about $38,000. Legal & General Group Plc bought a new position in Ardmore Shipping in the 2nd quarter worth about $49,000. EverSource Wealth Advisors LLC increased its stake in shares of Ardmore Shipping by 1,689.0% in the second quarter. EverSource Wealth Advisors LLC now owns 8,444 shares of the shipping company's stock valued at $81,000 after purchasing an additional 7,972 shares during the period. Finally, Tower Research Capital LLC TRC increased its stake in shares of Ardmore Shipping by 536.3% in the second quarter. Tower Research Capital LLC TRC now owns 8,737 shares of the shipping company's stock valued at $84,000 after purchasing an additional 7,364 shares during the period. Institutional investors and hedge funds own 62.22% of the company's stock.

Ardmore Shipping Company Profile

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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