Core Insights - The initiation of coverage by new analysts can significantly benefit investors and influence financial markets, providing valuable insights into a company's financial health, growth potential, competitive position, and industry trends [1] - Ardmore Shipping Corporation (ASC) and DHT Holdings, Inc. (DHT) have recently received new analyst coverage, indicating their potential value and growth opportunities for investors [1] Analyst Coverage Impact - Stocks that receive new analyst coverage often experience gradual upward price movements, with the extent of these movements influenced by the analysts' recommendations [2] - Positive recommendations such as "Buy" and "Strong Buy" lead to more substantial price reactions compared to negative recommendations [2] - Increased attention from investors and portfolio managers is observed for companies with limited prior analyst coverage when new recommendations are made [2] Investment Strategy - Focusing on the number of recent analyst recommendations can provide insights into overall sentiment and potential stock trajectory, aiding in informed investment decisions [3] - Screening criteria include an increase in broker ratings compared to four weeks ago and an improvement in average broker ratings [4] Screening Parameters - Additional screening parameters include a stock price of at least $5 and an average daily volume of at least 100,000 shares to attract investor interest [5] Company Performance - Ardmore Shipping (ASC) has seen a 25.4% share price increase over the past six months, outperforming the industry's 21.9% rise, with EPS estimates for 2024 rising to $2.60 from $2.44 [6] - DHT Holdings (DHT) shares have increased by 22.4% over the past six months, also outperforming the industry's 21.9% rise, with earnings estimates indicating a 43.4% year-over-year growth [7]

Ardmore Shipping (ASC) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this shipping company have returned -5.5% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Transportation - Shipping industry, to which Ardmore Shipping belongs, has gained 3.1% over this period. Now the key question is: Where could the stock be headed in the near ter ...

One stock that might be an intriguing choice for investors right now is Ardmore Shipping Corporation (ASC) . This is because this security in the Transportation - Shipping space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking pl ...

Ardmore Shipping (ASC) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this shipping company have returned -0.1%, compared to the Zacks S&P 500 composite's +5.2% change. During this period, the Zacks Transportation - Shipping industry, which Ardmore Shipping falls in, has lost 0.5%. The key question now is: What could be the stock's f ...

Core Insights - Recent analyst coverage on stocks like ICU Medical, Inc. (ICUI) and Ardmore Shipping Corporation (ASC) is expected to attract investor attention due to the perceived value these companies hold [1][2] - Analysts play a crucial role in creating value for companies by providing essential data that helps investors make informed decisions [2] - New analyst coverage typically leads to positive stock price movements, especially with favorable recommendations [3] Company Summaries ICU Medical, Inc. (ICUI) - ICUI's shares have decreased by 23.7% over the past six months, while the industry has risen by 8.9% [6] - Earnings per share (EPS) estimates have increased from $4.43 to $4.55 in the last 30 days, indicating analysts' optimism [7] - The company has consistently surpassed earnings estimates, with an average surprise of 18.9% over the trailing four quarters [7] Ardmore Shipping Corporation (ASC) - ASC's shares have increased by 27.3% over the past six months, outperforming the industry's 19% rise [8] - EPS estimates have risen from $2.11 to $2.60 in the last 30 days, reflecting positive analyst sentiment [8] - The company has also exceeded earnings estimates in each of the trailing four quarters, with an average surprise of 5.6% [8] Screening Criteria - Stocks with an increase in broker ratings compared to four weeks ago are prioritized for potential investment [4] - Additional criteria include a stock price of at least $5 and an average daily volume of 100,000 shares or more to ensure sufficient investor interest [5]

Core Viewpoint - Ardmore Shipping has successfully narrowed its valuation gap, now trading at approximately 0.85 times Net Asset Value (NAV), and has become the second-best performer among product tanker companies [2][10]. Financial Performance - As of December 31, 2023, Ardmore Shipping reported current assets of $126.8 million and liabilities of $153.4 million, with total assets at $691 million, down from $723.9 million in 2022 [3][4]. - The company reported adjusted earnings of $26.1 million for Q4, equivalent to $0.63 per share, and declared a dividend of $0.21 per share, a 31% increase from Q3 [8][9]. - The Q1 guidance projects a fleet average Time Charter Equivalent (TCE) of $32.4k per day, with 60% of MR vessels booked at $35.4k per day [9]. Market Outlook - Disruptions in the Suez Canal and Panama Canal have led to increased demand for product tankers, with a projected increase in global product tanker tonne-miles ranging from 6% to 12% [5][6]. - The supply side remains favorable, with the oldest MR fleet in history and a moderate order book at 7.7%, indicating that around 47% of MR vessels will be older than 20 years in the next five years [6]. Valuation and Investment Strategy - The year-end NAV is estimated at $19.4 per share, suggesting the stock is trading at a fair value with potential upside if market conditions remain favorable [10][11]. - Despite a solid financial position, the company has maintained a modest dividend policy, distributing only one-third of quarterly EPS, which has led to a decision to exit long positions in favor of other investment opportunities [3][14].

Financial Data and Key Metrics Changes - Ardmore Shipping reported earnings of $113 million, or $2.71 per share for the full year 2023, with fourth-quarter adjusted earnings of $26 million, or $0.63 per share, reflecting strong market conditions [8][14] - The company declared a quarterly cash dividend of $0.21 per share, consistent with its policy of paying out one third of adjusted earnings [9][30] - The breakeven level was lowered to $13,900 per day due to effective cost control and reduced debt levels, with nearly $50 million in cash on hand at the end of the quarter [13] Business Line Data and Key Metrics Changes - MRs (Medium Range tankers) earned $32,500 per day in Q4 and $35,400 per day in Q1 2024, while chemical tankers earned $29,300 per day in Q4 and $30,100 per day in Q1 2024 [8][9] - The company completed seven dry dockings in 2023 with a total capital expenditure of nearly $40 million, focusing on energy efficiency technologies [15][18] Market Data and Key Metrics Changes - Refined product tonne-mile demand increased by 11% year-on-year, driven by geopolitical disruptions and climate-related trading restrictions [11] - The EU refined product embargo and reduced traffic in the Panama Canal have significantly impacted supply, with traffic down by up to 30% overall [11][36] - The product tanker order book stands at 13% of the existing fleet, with the MR order book under 8%, indicating limited fleet growth [39][40] Company Strategy and Development Direction - Ardmore Shipping focuses on MR product tankers and chemical tankers, aiming to increase scale and organizational capability while adapting to changing market conditions driven by energy transition [20][21] - The company emphasizes a combination of performance and progress, with a strong focus on relative performance metrics compared to peers [22] - Ardmore's energy transition plan aims to improve fleet efficiency and reduce emissions while meeting ongoing demand for refined products [24][27] Management's Comments on Operating Environment and Future Outlook - Management highlighted robust market conditions strengthening into Q1 2024, driven by geopolitical disruptions and favorable supply-demand fundamentals [18] - The company is well-positioned to benefit from ongoing strong market conditions, with a focus on capital allocation priorities and fleet modernization [9][18] - Management acknowledged the potential for a prolonged bull market, suggesting that the current cycle could last another two to four years [69] Other Important Information - Ardmore Shipping's governance practices have been recognized, ranking as the number one publicly traded tanker company in the Webber ESG Scorecard [23] - The company has invested significantly in energy efficiency technologies, with 50% of its fleet expected to be outfitted with carbon-capture-ready scrubbers [15][24] Q&A Session Summary Question: What percentage of the global fleet can make it around Africa without refueling? - Every ship can technically make the journey, but operationally it may not be practical due to bunker planning and potential bottlenecks in South Africa [60][61] Question: Can Russian refined products be sold through middlemen to other markets? - There are concerns about the potential for Russian crude or products to re-enter the supply chain in the West, but tracking this is complex [66] Question: What was the price of fuel used to calculate the return on capital for environmental savings? - The price of fuel used for calculations was approximately $500 per ton, equating to about $70 per barrel [64][65] Question: How is Ardmore preparing for a potentially longer cycle? - Management is aware of historical patterns and is positioning the company to capitalize on the current market strength while preparing for various outcomes [68][69]

Earnings Presentation Fourth Quarter and Full Year 2023 & Investor Day 2024 To Submit Questions for the Q&A Session Ardmore@IGBIR.com ...

Financial Performance - The Company reported net income of $113.4 million for the year ended December 31, 2023, down from $135.1 million in 2022, representing a decrease of approximately 16%[17] - Revenue for the three months ended December 31, 2023 was $98.9 million, a decrease of $33.9 million or 25.5% from $132.8 million for the same period in 2022[17] - Net revenue for the three months ended December 31, 2023, was $98,878 thousand, a decrease of 25.6% compared to $132,831 thousand for the same period in 2022[33] - Net income for the year ended December 31, 2023, was $116,808 thousand, down 15.7% from $138,454 thousand in 2022[33] - Adjusted EBITDA for the year ended December 31, 2023, was $159,489 thousand, a decline of 12.5% from $168,869 thousand in 2022[36] - Adjusted EBITDA for the three months ended December 31, 2023, was $37.839 million, compared to $66.457 million for the same period in 2022, reflecting a decline of approximately 43%[49] - The company reported EBITDA of $37.839 million for the three months ended December 31, 2023, compared to $66.457 million for the same period in 2022, indicating a significant decrease in operational performance[49] - Earnings per share, diluted, for the year ended December 31, 2023, was $2.71, a decrease of 23.1% from $3.52 in 2022[33] - Adjusted earnings per share for the quarter ended December 31, 2023, was $0.63, down from $1.33 in the same quarter of 2022[50] Operational Metrics - The average TCE rate for the Company's fleet decreased to $29,702 per day for the three months ended December 31, 2023, down $9,159 per day or 23.5% from $38,861 per day in 2022[20] - The Company had 2,293 spot revenue days for the three months ended December 31, 2023, a decrease of 106 days or 4.4% from 2,399 days in the same period of 2022[18] - Voyage expenses were $33.2 million for the three months ended December 31, 2023, a decrease of $6.3 million or 15.9% from $39.5 million in 2022[19] - Total charter hire expense was $5.7 million for the three months ended December 31, 2023, a decrease of $0.3 million or 5% from $6.0 million in 2022[22] - The average number of operating vessels in the fleet was 26.0 for the three months ended December 31, 2023, compared to 27.0 in the same period of 2022[36] - Fleet operating expenses per day increased to $7,192 for the three months ended December 31, 2023, compared to $6,927 in the same period of 2022[36] Liquidity and Debt - As of December 31, 2023, the Company had $268.0 million in liquidity available, with cash and cash equivalents of $46.8 million, down from $50.6 million in 2022[26] - Total debt decreased to $89.7 million as of December 31, 2023, down from $174.3 million in 2022, representing a reduction of approximately 48.6%[27] - Net cash used in financing activities for the year ended December 31, 2023, was $136,537 thousand, compared to $164,497 thousand in 2022[35] Environmental and Efficiency Initiatives - Ardmore's Energy Transition Plan focuses on transition technologies, projects, and sustainable cargos, aiming to enhance operational efficiency and reduce environmental impact[30] - CO2 emissions for the three months ended December 31, 2023, were 103,348 metric tonnes, a decrease from 105,625 metric tonnes in the same period of 2022[40] - The annual efficiency ratio (AER) for the fleet improved to 6.05g/tm for the twelve months ended December 31, 2023, down from 6.10g/tm in the previous year[40] - The energy efficiency operational indicator (EEOI) for the fleet increased to 13.34g/ctm for the twelve months ended December 31, 2023, compared to 12.53g/ctm in the previous year[40] - The company anticipates continued refinement of performance measures for emissions and efficiency, aligning with industry best practices[53] - The company expects to install additional scrubbers on vessels during 2024, enhancing compliance with environmental regulations[53] Future Outlook and Events - The Company plans to host an Investor Day and conference call on February 15, 2024, to discuss the financial results for the quarter ended December 31, 2023[28] - The company acknowledges potential impacts from geopolitical conflicts, including the Russia-Ukraine war and the Hamas-Israel war, on the shipping industry and its operations[54] Asset Valuation - Ardmore's total asset value was estimated at $721.62 million as of December 31, 2023, with a depreciated replacement value (DRV) per share of $17.47[37] - The estimated resale price for newbuild vessels of equivalent deadweight tonne is $51.50 million as of December 31, 2023[37] - Ardmore's commercial management business is estimated to have a value of $700.15 million, based on industry standard fees and a multiple of 7x net earnings[37]

Ardmore Shipping Corporation (ASC) is scheduled to release fourth-quarter 2023 earnings on Feb 15.ASC beat the Zacks Consensus Estimate in each of the last four quarters by an average of 4.33%.The Zacks Consensus Estimate for quarterly earnings per share has remained stable at 59 cents over the past 60 days.Against this backdrop, let’s take a look at the factors that might have shaped the company’s December-quarter performance.We expect Ardmore Shipping’s results to reflect bullishness surrounding the tanke ...