Ardmore Shipping (NYSE:ASC) Issues Earnings Results, Beats Estimates By $0.05 EPS

Ardmore Shipping (NYSE:ASC) issued its earnings results on Wednesday. The shipping company reported $1.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.13 by $0.05, 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 analysts’ expectations of $89.34 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 Price Performance

Shares of NYSE:ASC traded up $0.23 during midday trading on Thursday, reaching $16.98. 106,984 shares of the company’s stock traded hands, compared to its average volume of 684,766. The company has a debt-to-equity ratio of 0.16, a quick ratio of 4.43 and a current ratio of 4.87. The company has a market cap of $691.76 million, a P/E ratio of 12.77 and a beta of 0.04. Ardmore Shipping has a 1 year low of $10.17 and a 1 year high of $20.02. The company has a fifty day simple moving average of $16.37 and a two-hundred day simple moving average of $15.54.

Ardmore Shipping Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Friday, August 28th will be given a $0.79 dividend. This represents a $3.16 dividend on an annualized basis and a dividend yield of 18.6%. This is an increase from Ardmore Shipping’s previous quarterly dividend of $0.39. The ex-dividend date is Friday, August 28th. Ardmore Shipping’s payout ratio is currently 117.29%.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the company. Evercore set a $19.00 price target on Ardmore Shipping in a report on Tuesday, April 21st. Weiss Ratings reissued a “hold (c)” rating on shares of Ardmore Shipping in a research report on Tuesday, July 7th. Finally, Wall Street Zen upgraded Ardmore Shipping from a “buy” rating to a “strong-buy” rating in a research report on Saturday, May 9th. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $17.00.

Insider Activity at Ardmore Shipping

In other news, Director Curtis B. Mcwilliams sold 16,277 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $19.38, for a total value of $315,448.26. Following the completion of the sale, the director directly owned 60,673 shares in the company, valued at $1,175,842.74. This represents a 21.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, President Bart B. Kelleher sold 8,000 shares of the firm’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $19.07, for a total transaction of $152,560.00. Following the sale, the president owned 60,039 shares of the company’s stock, valued at approximately $1,144,943.73. The trade was a 11.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 40,000 shares of company stock valued at $766,048.

Institutional Investors Weigh In On Ardmore Shipping

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Zions Bancorporation National Association UT purchased a new position in Ardmore Shipping during the 4th quarter worth $25,000. Raymond James Financial Inc. acquired a new stake in shares of Ardmore Shipping during the second quarter worth $38,000. EverSource Wealth Advisors LLC grew its position in Ardmore Shipping by 1,689.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 8,444 shares of the shipping company’s stock valued at $81,000 after buying an additional 7,972 shares during the last quarter. Tower Research Capital LLC TRC increased its stake in Ardmore Shipping by 536.3% in the 2nd quarter. Tower Research Capital LLC TRC now owns 8,737 shares of the shipping company’s stock valued at $84,000 after buying an additional 7,364 shares during the period. Finally, Quadrant Capital Group LLC acquired a new stake in shares of Ardmore Shipping in the 3rd quarter worth $105,000. Hedge funds and other institutional investors own 62.22% of the company’s stock.

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.