Share Buyback Plan Initiated by Danaos (NYSE:DAC) Board of Directors

Danaos (NYSE:DAC - Get Free Report) announced that its Board of Directors has initiated a share buyback program on Monday, April 14th, RTT News reports. The company plans to buyback $100.00 million in shares. This buyback authorization permits the shipping company to buy up to 6.8% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board believes its shares are undervalued.

Danaos Stock Up 1.3 %

Shares of DAC traded up $1.00 during mid-day trading on Friday, reaching $77.03. 77,223 shares of the stock traded hands, compared to its average volume of 110,587. The firm has a market cap of $1.46 billion, a price-to-earnings ratio of 2.97 and a beta of 1.32. The stock has a fifty day simple moving average of $78.57 and a 200 day simple moving average of $80.29. The company has a quick ratio of 3.78, a current ratio of 3.93 and a debt-to-equity ratio of 0.19. Danaos has a 12-month low of $65.40 and a 12-month high of $98.25.

Danaos (NYSE:DAC - Get Free Report) last posted its quarterly earnings data on Monday, February 10th. The shipping company reported $6.50 earnings per share for the quarter, missing analysts' consensus estimates of $6.52 by ($0.02). Danaos had a net margin of 49.81% and a return on equity of 16.03%. Sell-side analysts expect that Danaos will post 29.21 EPS for the current fiscal year.

Danaos Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, March 5th. Stockholders of record on Monday, February 24th were given a dividend of $0.85 per share. This represents a $3.40 dividend on an annualized basis and a dividend yield of 4.41%. The ex-dividend date was Monday, February 24th. Danaos's payout ratio is currently 13.12%.

Wall Street Analyst Weigh In

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

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.