Danaos (NYSE:DAC) Hits New 12-Month High - Still a Buy?

Key Points

• Danaos shares reached a new 52-week high of $159.73, with the stock valued at approximately $2.90 billion and trading well above its 50-day and 200-day moving averages.
• Analyst sentiment is strongly positive: Weiss Ratings upgraded Danaos to “buy (a-)” and Freedom Capital raised its view to “strong-buy,” contributing to a consensus “Strong Buy” rating.
• Danaos reported quarterly EPS of $7.29, exceeding estimates by $0.49, while revenue also topped expectations. The company pays a $0.90 quarterly dividend, equivalent to a 2.3% yield and a 12.18% payout ratio.

Danaos Corporation (NYSE:DAC - Get Free Report)'s stock price reached a new 52-week high during trading on Wednesday . The stock traded as high as $159.73 and last traded at $159.5590, with a volume of 133927 shares changing hands. The stock had previously closed at $158.26.

Analysts Set New Price Targets

DAC has been the topic of several analyst reports. Weiss Ratings raised Danaos from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Tuesday, July 28th. Freedom Capital upgraded Danaos from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 5th. Three investment analysts have rated the stock with a Strong Buy rating, Based on data from MarketBeat.com, the company currently has a consensus rating of "Strong Buy".

Danaos Stock Performance

The company has a debt-to-equity ratio of 0.29, a quick ratio of 9.15 and a current ratio of 9.30. The firm's 50 day moving average is $142.93 and its 200-day moving average is $129.18. The stock has a market capitalization of $2.90 billion, a price-to-earnings ratio of 5.40 and a beta of 0.87.

Danaos (NYSE:DAC - Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The shipping company reported $7.29 EPS for the quarter, beating the consensus estimate of $6.80 by $0.49. Danaos had a net margin of 51.26% and a return on equity of 13.20%. The company had revenue of $274.37 million for the quarter, compared to analyst estimates of $258.27 million.

Danaos Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, July 30th. Stockholders of record on Tuesday, July 21st were paid a dividend of $0.90 per share. This represents a $3.60 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend was Tuesday, July 21st. Danaos's dividend payout ratio is presently 12.18%.

Hedge Funds Weigh In On Danaos

Several institutional investors and hedge funds have recently modified their holdings of the business. Parallel Advisors LLC boosted its position in Danaos by 33.2% during the 1st quarter. Parallel Advisors LLC now owns 1,171 shares of the shipping company's stock worth $132,000 after acquiring an additional 292 shares during the period. Ascentis Independent Advisors acquired a new position in shares of Danaos during the first quarter valued at $56,000. Morgan Dempsey Capital Management LLC raised its stake in shares of Danaos by 15.6% during the first quarter. Morgan Dempsey Capital Management LLC now owns 5,273 shares of the shipping company's stock valued at $594,000 after purchasing an additional 711 shares in the last quarter. DGS Capital Management LLC raised its stake in shares of Danaos by 3.8% during the fourth quarter. DGS Capital Management LLC now owns 26,310 shares of the shipping company's stock valued at $2,478,000 after purchasing an additional 966 shares in the last quarter. Finally, Aigen Investment Management LP lifted its holdings in Danaos by 38.9% in the fourth quarter. Aigen Investment Management LP now owns 4,584 shares of the shipping company's stock worth $432,000 after purchasing an additional 1,283 shares during the period. Hedge funds and other institutional investors own 19.01% of the company's stock.

About Danaos

Danaos Corporation NYSE: DAC is a Greek-based owner and operator of containerships. The company provides marine transportation services by chartering its vessels to major container-shipping companies, which use them to transport manufactured goods, commodities and other cargo on international trade routes.

Founded in 1972, Danaos has developed a globally deployed fleet serving the liner shipping industry. Its vessels operate across major maritime regions and support container trade between Asia, Europe, North America and other international markets.

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