Ardmore Shipping (NYSE:ASC) Announces Quarterly Earnings Results

Ardmore Shipping (NYSE:ASC) released its quarterly earnings results on Wednesday. The shipping company reported $1.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.11 by $0.07, FiscalAI reports. Ardmore Shipping had a net margin of 29.67% and a return on equity of 15.61%. The business had revenue of $116.21 million for the quarter, compared to analyst estimates 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 0.6%

Ardmore Shipping stock traded up $0.10 during midday trading on Friday, hitting $17.33. 197,277 shares of the stock were exchanged, compared to its average volume of 684,692. The company has a current ratio of 4.87, a quick ratio of 4.43 and a debt-to-equity ratio of 0.16. The stock’s 50-day simple moving average is $16.33 and its 200 day simple moving average is $15.58. Ardmore Shipping has a fifty-two week low of $10.17 and a fifty-two week high of $20.02. The stock has a market capitalization of $705.93 million, a price-to-earnings ratio of 6.71 and a beta of 0.04.

Ardmore Shipping Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, August 28th will be issued a $0.79 dividend. This is an increase from Ardmore Shipping’s previous quarterly dividend of $0.39. This represents a $3.16 dividend on an annualized basis and a dividend yield of 18.2%. The ex-dividend date of this dividend is Friday, August 28th. Ardmore Shipping’s payout ratio is currently 60.23%.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on ASC. Wall Street Zen upgraded shares of Ardmore Shipping from a “buy” rating to a “strong-buy” rating in a report on Saturday, May 9th. Evercore set a $19.00 target price on shares of Ardmore Shipping in a research note on Tuesday, April 21st. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Ardmore Shipping in a research note on Tuesday, July 7th. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $17.00.

Insider Buying and Selling at Ardmore Shipping

In other news, Director Kirsi Tikka sold 12,000 shares of the business’s stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $18.93, for a total value of $227,160.00. Following the sale, the director directly owned 35,471 shares of the company’s stock, valued at approximately $671,466.03. The trade was a 25.28% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Curtis B. Mcwilliams sold 16,277 shares of the firm’s stock in a transaction 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 transaction, the director owned 60,673 shares of the company’s stock, valued at approximately $1,175,842.74. This represents a 21.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 40,000 shares of company stock worth $766,048 over the last quarter.

Hedge Funds Weigh In On Ardmore Shipping

Institutional investors have recently bought and sold shares of the company. Zions Bancorporation National Association UT acquired a new stake in shares of Ardmore Shipping during the fourth quarter worth about $25,000. Raymond James Financial Inc. purchased a new stake in Ardmore Shipping during the 2nd quarter worth approximately $38,000. EverSource Wealth Advisors LLC lifted its holdings in Ardmore Shipping by 1,689.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 8,444 shares of the shipping company’s stock worth $81,000 after buying an additional 7,972 shares in the last quarter. Tower Research Capital LLC TRC lifted its holdings in Ardmore Shipping by 536.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 8,737 shares of the shipping company’s stock worth $84,000 after buying an additional 7,364 shares in the last quarter. Finally, Quadrant Capital Group LLC purchased a new position in Ardmore Shipping in the 3rd quarter valued at approximately $105,000. 62.22% of the stock is owned by institutional investors and hedge funds.

About Ardmore Shipping

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.