Danaos (NYSE:DAC) Hits New 52-Week Low - Should You Sell?

Danaos Co. (NYSE:DAC - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $65.40 and last traded at $71.76, with a volume of 164494 shares traded. The stock had previously closed at $66.47.

Wall Street Analysts Forecast Growth

DAC has been the subject of several recent analyst reports. StockNews.com raised shares of Danaos from a "hold" rating to a "buy" rating in a research note on Monday, March 10th. Jefferies Financial Group restated a "buy" rating and set a $105.00 price target on shares of Danaos in a research report on Tuesday, February 11th.

Danaos Trading Down 1.0 %

The company has a debt-to-equity ratio of 0.19, a quick ratio of 3.78 and a current ratio of 3.93. The stock has a market cap of $1.45 billion, a P/E ratio of 2.95 and a beta of 1.32. The stock has a 50-day moving average price of $78.94 and a 200-day moving average price of $80.54.

Danaos (NYSE:DAC - Get Free Report) last announced its earnings results on Monday, February 10th. The shipping company reported $6.50 earnings per share (EPS) for the quarter, missing the consensus estimate of $6.52 by ($0.02). Danaos had a net margin of 49.81% and a return on equity of 16.03%. On average, equities research analysts expect that Danaos Co. will post 29.21 EPS for the current year.

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Danaos Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, March 5th. Shareholders of record on Monday, February 24th were given a dividend of $0.85 per share. The ex-dividend date of this dividend was Monday, February 24th. This represents a $3.40 dividend on an annualized basis and a yield of 4.44%. Danaos's payout ratio is 13.12%.

Danaos declared that its board has initiated a share repurchase program on Monday, April 14th that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the shipping company to repurchase up to 6.8% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On Danaos

A number of large investors have recently modified their holdings of the company. Ion Asset Management Ltd. lifted its holdings in shares of Danaos by 47.8% in the 4th quarter. Ion Asset Management Ltd. now owns 566,050 shares of the shipping company's stock worth $45,324,000 after acquiring an additional 183,050 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its position in Danaos by 18.1% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 314,787 shares of the shipping company's stock valued at $25,205,000 after buying an additional 48,155 shares during the period. No Street GP LP grew its stake in shares of Danaos by 11.1% during the fourth quarter. No Street GP LP now owns 250,000 shares of the shipping company's stock valued at $20,018,000 after buying an additional 25,000 shares during the last quarter. Voloridge Investment Management LLC increased its holdings in shares of Danaos by 20.4% in the fourth quarter. Voloridge Investment Management LLC now owns 103,937 shares of the shipping company's stock worth $8,322,000 after buying an additional 17,643 shares during the period. Finally, TrueMark Investments LLC lifted its stake in shares of Danaos by 252.9% in the 4th quarter. TrueMark Investments LLC now owns 65,485 shares of the shipping company's stock valued at $5,243,000 after acquiring an additional 46,930 shares during the last quarter. 19.01% of the stock is owned by hedge funds and other institutional investors.

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.