Dorian LPG (NYSE:LPG) Shares Gap Up - Here's Why

Key Points

• Dorian LPG shares opened higher, rising from a prior close of $53.43 to $55.07 and recently trading at $55.19. Analysts collectively rate the stock “Buy,” with a consensus price target of $55.00.
• The company reported strong quarterly results, with EPS of $2.52 versus the $2.12 estimate and revenue of $187.88 million, up 123.1% year over year. It also paid a special dividend of $1.00 per share.
• Insiders sold 126,000 shares worth approximately $6.16 million over the past 90 days, while institutional investors own 62.5% of the stock. Dorian LPG has a $2.37 billion market capitalization and operates very large gas carriers transporting liquefied petroleum gas internationally.

Dorian LPG Ltd. (NYSE:LPG - Get Free Report) shares gapped up prior to trading on Monday. The stock had previously closed at $53.43, but opened at $55.07. Dorian LPG shares last traded at $55.19, with a volume of 42,061 shares changing hands.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Weiss Ratings reissued a "buy (b-)" rating on shares of Dorian LPG in a research note on Tuesday, August 25th. Wall Street Zen lowered shares of Dorian LPG from a "strong-buy" rating to a "buy" rating in a research note on Saturday. Finally, Freedom Capital upgraded shares of Dorian LPG from a "hold" rating to a "strong-buy" rating in a report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $55.00.

Dorian LPG Stock Performance

The company has a debt-to-equity ratio of 0.28, a current ratio of 3.26 and a quick ratio of 3.24. The firm has a market cap of $2.37 billion, a price-to-earnings ratio of 7.33 and a beta of 0.61. The company has a fifty day moving average price of $49.71 and a two-hundred day moving average price of $42.26.

Dorian LPG (NYSE:LPG - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The shipping company reported $2.52 earnings per share for the quarter, topping the consensus estimate of $2.12 by $0.40. The firm had revenue of $187.88 million for the quarter, compared to analysts' expectations of $160.78 million. Dorian LPG had a net margin of 55.00% and a return on equity of 25.69%. The company's quarterly revenue was up 123.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.27 EPS.

Dorian LPG Dividend Announcement

The firm also recently declared a special dividend, which was paid on Wednesday, August 12th. Stockholders of record on Monday, July 27th were issued a dividend of $1.00 per share. The ex-dividend date was Monday, July 27th.

Insider Activity at Dorian LPG

In related news, insider Tim Hansen sold 50,000 shares of the stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $53.12, for a total value of $2,656,000.00. Following the completion of the sale, the insider directly owned 107,675 shares of the company's stock, valued at approximately $5,719,696. This represents a 31.71% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Theodore Young sold 11,919 shares of the firm's stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $54.50, for a total value of $649,585.50. Following the sale, the chief financial officer owned 107,794 shares of the company's stock, valued at $5,874,773. The trade was a 9.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 126,000 shares of company stock valued at $6,163,449. Company insiders own 13.50% of the company's stock.

Institutional Trading of Dorian LPG

Hedge funds have recently made changes to their positions in the stock. Arrowstreet Capital Limited Partnership purchased a new position in Dorian LPG in the first quarter valued at about $11,929,000. Pacer Advisors Inc. increased its position in Dorian LPG by 2,540.0% in the 1st quarter. Pacer Advisors Inc. now owns 190,446 shares of the shipping company's stock worth $6,513,000 after purchasing an additional 183,232 shares during the last quarter. Allspring Global Investments Holdings LLC raised its stake in shares of Dorian LPG by 227.7% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 215,568 shares of the shipping company's stock worth $7,247,000 after purchasing an additional 149,787 shares in the last quarter. Empowered Funds LLC raised its stake in shares of Dorian LPG by 117.5% during the 1st quarter. Empowered Funds LLC now owns 197,030 shares of the shipping company's stock worth $6,738,000 after purchasing an additional 106,428 shares in the last quarter. Finally, First Trust Advisors LP lifted its holdings in shares of Dorian LPG by 76.6% during the 1st quarter. First Trust Advisors LP now owns 181,420 shares of the shipping company's stock valued at $6,205,000 after buying an additional 78,710 shares during the last quarter. 62.50% of the stock is owned by hedge funds and other institutional investors.

About Dorian LPG

Dorian LPG Ltd. NYSE: LPG is a maritime transportation company that owns and operates very large gas carriers (VLGCs). The company primarily transports liquefied petroleum gas (LPG), including propane and butane, for energy producers, commodity traders and other customers in international markets.

Dorian LPG's fleet is designed for the ocean transportation of LPG between major exporting and importing regions. Its vessels support global trade routes linking LPG-producing areas, including the United States and the Middle East, with demand centers in Asia, Europe and other regions.

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