Ardmore Shipping (NYSE:ASC) Shares Up 8.5% After Better-Than-Expected Earnings

Ardmore Shipping Co. (NYSE:ASC) shares shot up 8.5% during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $19.12 and last traded at $19.10. 350,835 shares traded hands during trading, a decline of 43% from the average session volume of 613,349 shares. The stock had previously closed at $17.60.

The shipping company reported $0.92 earnings per share for the quarter, topping analysts’ consensus estimates of $0.87 by $0.05. Ardmore Shipping had a net margin of 29.50% and a return on equity of 22.76%. The business had revenue of $106.30 million for the quarter, compared to the consensus estimate of $72.46 million. During the same period in the previous year, the company earned $1.04 earnings per share. The firm’s revenue for the quarter was down 10.1% on a year-over-year basis.

Ardmore Shipping Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 14th. Stockholders of record on Friday, May 31st will be issued a $0.31 dividend. This represents a $1.24 dividend on an annualized basis and a dividend yield of 6.00%. This is a boost from Ardmore Shipping’s previous quarterly dividend of $0.21. The ex-dividend date of this dividend is Friday, May 31st. Ardmore Shipping’s dividend payout ratio is presently 30.77%.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. Jefferies Financial Group boosted their price target on Ardmore Shipping from $20.00 to $21.00 and gave the stock a “buy” rating in a research report on Wednesday. StockNews.com raised Ardmore Shipping from a “hold” rating to a “buy” rating in a report on Tuesday. Finally, Stifel Nicolaus raised their price target on Ardmore Shipping from $21.00 to $22.00 and gave the company a “buy” rating in a report on Friday, April 19th.

Hedge Funds Weigh In On Ardmore Shipping

Several institutional investors and hedge funds have recently made changes to their positions in the company. Russell Investments Group Ltd. raised its stake in Ardmore Shipping by 51.1% in the 4th quarter. Russell Investments Group Ltd. now owns 606,898 shares of the shipping company’s stock worth $8,551,000 after purchasing an additional 205,245 shares in the last quarter. Glenorchy Capital Ltd acquired a new stake in shares of Ardmore Shipping in the fourth quarter valued at approximately $2,081,000. Wellington Management Group LLP boosted its stake in shares of Ardmore Shipping by 23.9% in the fourth quarter. Wellington Management Group LLP now owns 696,697 shares of the shipping company’s stock valued at $9,816,000 after buying an additional 134,233 shares during the period. SG Americas Securities LLC acquired a new stake in Ardmore Shipping during the first quarter worth approximately $2,170,000. Finally, Tejara Capital Ltd bought a new position in Ardmore Shipping during the 3rd quarter worth $1,171,000. Institutional investors and hedge funds own 62.22% of the company’s stock.

Ardmore Shipping Price Performance

The company has a fifty day simple moving average of $16.52 and a two-hundred day simple moving average of $15.31. The stock has a market capitalization of $839.35 million, a price-to-earnings ratio of 7.48 and a beta of 0.36. The company has a debt-to-equity ratio of 0.15, a quick ratio of 3.38 and a current ratio of 3.75.

Ardmore Shipping Company Profile

Ardmore Shipping Corporation engages in the seaborne transportation of petroleum products and chemicals worldwide. The company's fleet consists of 22 owned vessels including 21 Eco-design and 1 Eco-mod vessel, and four chartered-in vessels. It serves oil majors, oil companies, oil and chemical traders, chemical companies, and pooling service providers.