Danaos (NYSE:DAC) Shares Down 3.3% – Here’s Why

Danaos Co. (NYSE:DAC)’s share price fell 3.3% during trading on Monday . The company traded as low as $86.15 and last traded at $86.25. 67,093 shares were traded during trading, a decline of 36% from the average session volume of 104,603 shares. The stock had previously closed at $89.19.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on DAC. Wall Street Zen downgraded Danaos from a “buy” rating to a “hold” rating in a research report on Wednesday, May 14th. Jefferies Financial Group increased their price objective on shares of Danaos from $100.00 to $105.00 and gave the stock a “buy” rating in a research note on Wednesday, May 14th.

Danaos Stock Performance

The stock has a market cap of $1.63 billion, a P/E ratio of 3.32 and a beta of 1.38. The company has a debt-to-equity ratio of 0.19, a current ratio of 3.93 and a quick ratio of 3.78. The stock has a 50-day simple moving average of $81.70 and a 200-day simple moving average of $80.30.

Danaos (NYSE:DAC) last issued its quarterly earnings data on Tuesday, May 13th. The shipping company reported $6.04 EPS for the quarter, missing the consensus estimate of $6.33 by ($0.29). The company had revenue of $253.31 million during the quarter, compared to the consensus estimate of $242.00 million. Danaos had a net margin of 49.81% and a return on equity of 16.03%. During the same period in the previous year, the company earned $7.15 EPS. Research analysts forecast that Danaos Co. will post 29.21 earnings per share for the current year.

Danaos Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 5th. Investors of record on Tuesday, May 27th were given a dividend of $0.85 per share. The ex-dividend date was Tuesday, May 27th. This represents a $3.40 annualized dividend and a yield of 3.95%. Danaos’s dividend payout ratio is presently 13.96%.

Danaos announced that its Board of Directors has authorized a stock repurchase plan on Monday, April 14th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the shipping company to buy up to 6.8% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Blue Trust Inc. lifted its holdings in Danaos by 43.4% in the fourth quarter. Blue Trust Inc. now owns 5,335 shares of the shipping company’s stock valued at $427,000 after buying an additional 1,615 shares during the period. Allworth Financial LP boosted its position in shares of Danaos by 340.1% during the 4th quarter. Allworth Financial LP now owns 1,941 shares of the shipping company’s stock valued at $149,000 after purchasing an additional 1,500 shares in the last quarter. PFG Advisors grew its stake in Danaos by 12.5% during the fourth quarter. PFG Advisors now owns 5,856 shares of the shipping company’s stock worth $469,000 after purchasing an additional 651 shares during the period. Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its holdings in Danaos by 61.7% in the fourth quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 13,697 shares of the shipping company’s stock worth $1,097,000 after purchasing an additional 5,228 shares in the last quarter. Finally, Sei Investments Co. grew its position in shares of Danaos by 12.8% during the 4th quarter. Sei Investments Co. now owns 32,629 shares of the shipping company’s stock worth $2,613,000 after buying an additional 3,696 shares during the period. Institutional investors and hedge funds own 19.01% of the company’s stock.

About Danaos

Danaos Corporation, together with its subsidiaries, provides container and drybulk vessels services in Australia, Asia, and Europe. The company offers seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry. As of April 03, 2024, it had a fleet of 68 containerships aggregating 421,293 twenty-foot equivalent units in capacity.