Global Ship Lease (NYSE:GSL) Shares Break Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Global Ship Lease shares moved above their 200-day moving average, reaching $45.15 before closing around $43.02. The stock has a market capitalization of approximately $1.54 billion and trades at a price-to-earnings ratio of 4.14.
• Analysts maintain a generally positive outlook, with a consensus “Buy” rating and an average price target of $51.00. Recent price targets were raised to $52 by B. Riley and $50 by Jefferies.
• The company exceeded quarterly earnings and revenue expectations and pays a quarterly dividend of $0.625 per share, representing an annualized yield of about 5.8%. However, insiders sold 84,000 shares worth approximately $3.76 million over the past three months.

Shares of Global Ship Lease, Inc. (NYSE:GSL - Get Free Report) passed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $41.28 and traded as high as $45.15. Global Ship Lease shares last traded at $43.0230, with a volume of 614,488 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on GSL shares. Zacks Research upgraded Global Ship Lease from a "strong sell" rating to a "hold" rating in a report on Monday, July 27th. Wall Street Zen downgraded Global Ship Lease from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Weiss Ratings reiterated a "buy (b)" rating on shares of Global Ship Lease in a report on Friday, July 17th. B. Riley Financial lifted their price target on shares of Global Ship Lease from $48.00 to $52.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Finally, Jefferies Financial Group lifted their price target on shares of Global Ship Lease from $45.00 to $50.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Buy" and an average price target of $51.00.

Global Ship Lease Stock Down 4.8%

The firm has a 50-day moving average of $44.44 and a two-hundred day moving average of $41.28. The firm has a market cap of $1.54 billion, a price-to-earnings ratio of 4.14 and a beta of 0.98. The company has a current ratio of 2.13, a quick ratio of 2.06 and a debt-to-equity ratio of 0.27.

Global Ship Lease (NYSE:GSL - Get Free Report) last released its earnings results on Wednesday, August 5th. The shipping company reported $2.48 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.42 by $0.06. The firm had revenue of $198.69 million for the quarter, compared to analyst estimates of $186.85 million. Global Ship Lease had a return on equity of 19.92% and a net margin of 49.10%. The company's revenue was up 3.9% on a year-over-year basis. During the same quarter last year, the firm posted $2.67 EPS. As a group, sell-side analysts predict that Global Ship Lease, Inc. will post 9.62 earnings per share for the current fiscal year.

Global Ship Lease Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st were issued a dividend of $0.6250 per share. The ex-dividend date was Friday, August 21st. This represents a $2.50 dividend on an annualized basis and a dividend yield of 5.8%. Global Ship Lease's payout ratio is 24.04%.

Insider Activity

In other news, CFO Anastasios Psaropoulos sold 48,330 shares of the firm's stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $45.02, for a total value of $2,175,816.60. Following the sale, the chief financial officer owned 68,698 shares in the company, valued at approximately $3,092,783.96. This trade represents a 41.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Ulrike Helfer sold 4,000 shares of the business's stock in a transaction on Wednesday, September 30th. The stock was sold at an average price of $44.82, for a total transaction of $179,280.00. Following the transaction, the director directly owned 8,503 shares in the company, valued at $381,104.46. This trade represents a 31.99% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 84,000 shares of company stock valued at $3,758,097. 7.40% of the stock is owned by company insiders.

Institutional Trading of Global Ship Lease

Hedge funds have recently bought and sold shares of the stock. SHP Wealth Management acquired a new position in Global Ship Lease in the 4th quarter valued at approximately $35,000. EverSource Wealth Advisors LLC lifted its position in shares of Global Ship Lease by 49.4% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,579 shares of the shipping company's stock worth $59,000 after acquiring an additional 522 shares during the period. Pinnacle Holdings LLC bought a new stake in shares of Global Ship Lease in the 2nd quarter worth approximately $80,000. Ameritas Advisory Services LLC bought a new stake in shares of Global Ship Lease in the 2nd quarter worth approximately $103,000. Finally, Ritholtz Wealth Management acquired a new stake in shares of Global Ship Lease during the 1st quarter worth approximately $203,000. 50.08% of the stock is owned by institutional investors.

About Global Ship Lease

Global Ship Lease, Inc NYSE: GSL is a containership owner and charterer that provides maritime transportation capacity to liner companies. The company owns and manages a fleet of container vessels designed to transport manufactured goods, consumer products, industrial materials and other containerized cargo across international trade routes.

Global Ship Lease generally employs time-charter arrangements, under which its vessels are leased to container shipping companies for specified periods.

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