Ardmore Shipping (NYSE:ASC – Get Free Report) issued its earnings results on Wednesday. The shipping company reported $1.18 EPS for the quarter, topping analysts’ consensus estimates of $1.11 by $0.07, FiscalAI reports. Ardmore Shipping had a net margin of 18.00% and a return on equity of 9.63%. The company had revenue of $116.21 million for the quarter, compared to the consensus estimate of $86.30 million.
Here are the key takeaways from Ardmore Shipping’s conference call:
- Positive Sentiment: Ardmore reported strong second-quarter adjusted earnings of $48.3 million, or $1.18 per share, and declared a $0.79 per-share dividend, consistent with its two-thirds payout policy.
- Positive Sentiment: Product tanker rates remained well above seasonal levels: MR tankers earned $29,600 per day in the third quarter to date, up 20% year over year, while chemical tankers earned $25,000 per day, up 10%.
- Positive Sentiment: Management sees supportive tanker fundamentals from elevated refining margins, longer-haul trade, depleted inventories requiring restocking, Russian diesel export restrictions, and an aging fleet with relatively limited orderbook growth.
- Positive Sentiment: The company exercised options for two additional Handysize newbuildings, bringing its orderbook to four vessels, while retaining options for two more; leverage remains modest at 24% including forward newbuilding CapEx, with nearly $300 million in undrawn revolving capacity.
- Neutral Sentiment: Executives emphasized that geopolitical developments, potential Panama Canal constraints, refining activity, and commodity-price arbitrage could produce a wide range of freight-rate outcomes, making the market outlook highly volatile despite current strength.
Ardmore Shipping Trading Up 1.3%
Shares of NYSE:ASC traded up $0.21 during mid-day trading on Wednesday, reaching $16.60. 386,459 shares of the company were exchanged, compared to its average volume of 685,056. The company has a debt-to-equity ratio of 0.16, a current ratio of 4.87 and a quick ratio of 4.43. The firm has a market cap of $676.00 million, a price-to-earnings ratio of 12.55 and a beta of 0.04. The firm’s 50-day simple moving average is $16.43 and its 200 day simple moving average is $15.51. Ardmore Shipping has a 1 year low of $10.17 and a 1 year high of $20.02.
Ardmore Shipping Increases Dividend
Insider Activity at Ardmore Shipping
In other Ardmore Shipping news, Director Curtis B. Mcwilliams sold 16,277 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $19.38, for a total value of $315,448.26. Following the sale, the director owned 60,673 shares of the company’s stock, valued at $1,175,842.74. The trade was a 21.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Kirsi Tikka sold 12,000 shares of the company’s stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $18.93, for a total value of $227,160.00. Following the transaction, the director owned 35,471 shares in the company, valued at $671,466.03. This trade represents a 25.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 40,000 shares of company stock worth $766,048.
Hedge Funds Weigh In On Ardmore Shipping
A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Virtu Financial LLC purchased a new stake in Ardmore Shipping during the fourth quarter worth about $108,000. Mercer Global Advisors Inc. ADV grew its holdings in shares of Ardmore Shipping by 35.5% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 16,529 shares of the shipping company’s stock valued at $175,000 after purchasing an additional 4,328 shares in the last quarter. Empowered Funds LLC increased its stake in Ardmore Shipping by 10.8% during the 4th quarter. Empowered Funds LLC now owns 242,258 shares of the shipping company’s stock worth $2,566,000 after buying an additional 23,580 shares during the period. XTX Topco Ltd purchased a new stake in Ardmore Shipping during the 4th quarter worth approximately $714,000. Finally, Susquehanna Portfolio Strategies LLC acquired a new stake in Ardmore Shipping during the 4th quarter worth approximately $314,000. 62.22% of the stock is currently owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth
A number of research firms recently commented on ASC. Wall Street Zen upgraded Ardmore Shipping from a “buy” rating to a “strong-buy” rating in a report on Saturday, May 9th. Weiss Ratings restated a “hold (c)” rating on shares of Ardmore Shipping in a research report on Tuesday, July 7th. Finally, Evercore set a $19.00 price target on Ardmore Shipping in a research note on Tuesday, April 21st. Two research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $17.00.
View Our Latest Stock Report on ASC
Ardmore Shipping Company Profile
Ardmore Shipping Corporation is a Bermuda-based provider of seaborne transportation services for refined petroleum products. The company owns and operates a modern fleet of product tankers, including medium-range (MR), long-range 2 (LR2) and Aframax vessels. Ardmore Shipping focuses on the ocean carriage of clean and dirty petroleum products under time charters, bareboat charters and spot voyages, serving a diverse customer base that includes major oil companies and trading houses.
Since its founding in 2005, Ardmore Shipping has grown its fleet through newbuilding contracts, second-hand acquisitions and fleet renewals, aiming to maintain a high quality, fuel-efficient profile.
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