Short Interest in Danaos Corporation (NYSE:DAC) Expands By 14.6%

Key Points

• Short interest rose 14.6% in April to 435,572 shares, representing 4.1% of shares outstanding and a days-to-cover ratio of 6.1.
• Danaos reported a quarterly beat with $7.14 EPS vs. $6.46 expected and revenue of $266.27 million, with a net margin of 47.45% and ROE of 13.31%.
• The company pays a quarterly dividend of $0.90 (annualized $3.60, yield 3.0%), and the stock carries a market cap of $2.18 billion with an average analyst rating of "Moderate Buy" and a $105 price target.

Danaos Corporation (NYSE:DAC - Get Free Report) saw a significant increase in short interest in the month of April. As of April 15th, there was short interest totaling 435,572 shares, an increase of 14.6% from the March 31st total of 380,166 shares. Based on an average daily trading volume, of 71,471 shares, the days-to-cover ratio is currently 6.1 days. Currently, 4.1% of the company's shares are sold short.

Danaos Trading Up 0.2%

NYSE DAC opened at $120.01 on Friday. The company's fifty day simple moving average is $114.60 and its 200-day simple moving average is $102.64. Danaos has a 52 week low of $79.48 and a 52 week high of $123.93. The company has a current ratio of 3.28, a quick ratio of 3.23 and a debt-to-equity ratio of 0.23. The stock has a market cap of $2.18 billion, a P/E ratio of 4.48 and a beta of 0.95.

Danaos (NYSE:DAC - Get Free Report) last posted its earnings results on Monday, February 9th. The shipping company reported $7.14 EPS for the quarter, topping analysts' consensus estimates of $6.46 by $0.68. The business had revenue of $266.27 million for the quarter, compared to analysts' expectations of $253.00 million. Danaos had a net margin of 47.45% and a return on equity of 13.31%.

Danaos Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, March 4th. Stockholders of record on Monday, February 23rd were paid a $0.90 dividend. This represents a $3.60 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date was Monday, February 23rd. Danaos's dividend payout ratio is 13.44%.

Wall Street Analysts Forecast Growth

DAC has been the subject of several research reports. Weiss Ratings reiterated a "buy (b)" rating on shares of Danaos in a research note on Wednesday, January 21st. Freedom Capital raised shares of Danaos to a "hold" rating in a research report on Tuesday, March 10th. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $105.00.

Hedge Funds Weigh In On Danaos

Several large investors have recently modified their holdings of the stock. DGS Capital Management LLC lifted its position in shares of Danaos by 15.5% during the first quarter. DGS Capital Management LLC now owns 30,394 shares of the shipping company's stock worth $3,424,000 after purchasing an additional 4,084 shares during the last quarter. Ascentis Independent Advisors bought a new position in shares of Danaos during the first quarter worth about $56,000. Baer Investment Advisory LLC bought a new position in shares of Danaos during the first quarter worth about $794,000. Y Intercept Hong Kong Ltd bought a new position in shares of Danaos during the first quarter worth about $489,000. Finally, Shikiar Asset Management Inc. lifted its position in shares of Danaos by 123.2% during the first quarter. Shikiar Asset Management Inc. now owns 14,285 shares of the shipping company's stock worth $1,609,000 after purchasing an additional 7,885 shares during the last quarter. Institutional investors own 19.01% of the company's stock.

Danaos Company Profile

Danaos Corporation is a leading independent owner and manager of containerships, specializing in long-term charters of modern vessels to major liner companies worldwide. The company's core services include vessel acquisition and sale, technical and crew management, and commercial chartering, all aimed at supporting global containerized trade. Danaos leverages its in-house expertise in operations, maintenance and regulatory compliance to ensure reliable and efficient fleet performance.

Founded in 1972 by Dr.

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