Global Ship Lease (NYSE:GSL) Shares Gap Up Following Strong Earnings

Global Ship Lease, Inc. (NYSE:GSL) shares gapped up prior to trading on Monday after the company announced better than expected quarterly earnings. The stock had previously closed at $39.03, but opened at $41.65. Global Ship Lease shares last traded at $40.5310, with a volume of 55,607 shares trading hands.

The shipping company reported $2.75 earnings per share for the quarter, topping analysts’ consensus estimates of $2.46 by $0.29. The company had revenue of $201.36 million during the quarter, compared to the consensus estimate of $189.00 million. Global Ship Lease had a net margin of 49.10% and a return on equity of 19.92%. The firm’s quarterly revenue was up 4.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.62 EPS.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on GSL shares. Wall Street Zen cut Global Ship Lease from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Global Ship Lease in a report on Thursday, October 15th. Zacks Research upgraded Global Ship Lease from a “strong sell” rating to a “hold” rating in a research note on Monday, July 27th. Jefferies Financial Group boosted their price target on Global Ship Lease from $45.00 to $50.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Finally, B. Riley Financial boosted their price target on Global Ship Lease from $48.00 to $52.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat.com, Global Ship Lease has an average rating of “Buy” and a consensus price target of $51.00.

Insider Activity at Global Ship Lease

In related news, Director Ulrike Helfer sold 4,000 shares of the stock in a transaction that occurred on Wednesday, September 30th. The shares were sold at an average price of $44.82, for a total value of $179,280.00. Following the completion of the transaction, the director owned 8,503 shares of the company’s stock, valued at $381,104.46. This represents a 31.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Georgios Giannopoulos sold 7,692 shares of the firm’s stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $45.08, for a total transaction of $346,755.36. The disclosure for this sale is available in the SEC filing. Insiders have sold 91,692 shares of company stock valued at $4,104,852 in the last quarter. 7.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Public Employees Retirement System of Ohio acquired a new stake in Global Ship Lease during the 2nd quarter worth approximately $4,210,000. Sei Investments Co. increased its position in Global Ship Lease by 51.8% in the 1st quarter. Sei Investments Co. now owns 200,806 shares of the shipping company’s stock valued at $7,476,000 after acquiring an additional 68,535 shares during the period. Donald Smith & CO. Inc. acquired a new position in Global Ship Lease in the 2nd quarter valued at approximately $27,859,000. First Trust Advisors LP acquired a new position in Global Ship Lease in the 1st quarter valued at approximately $12,681,000. Finally, Navellier & Associates Inc. bought a new position in shares of Global Ship Lease during the second quarter valued at $1,857,000. 50.08% of the stock is currently owned by institutional investors and hedge funds.

Global Ship Lease Price Performance

The company’s 50 day moving average price is $43.71 and its 200-day moving average price is $40.60. The stock has a market cap of $1.46 billion, a P/E ratio of 3.90 and a beta of 1.03. The company has a quick ratio of 2.06, a current ratio of 2.13 and a debt-to-equity ratio of 0.27.

About Global Ship Lease

Global Ship Lease, Inc (NYSE:GSL) is a containership owner and chartering company. It owns and manages a fleet of mid-sized and smaller containerships, which are vessels designed to transport containerized cargo such as manufactured goods, consumer products and industrial materials.

The company primarily generates revenue by chartering its vessels to container shipping companies under fixed-rate time charter agreements. Its customers operate liner services that connect major ports and trade routes worldwide, allowing Global Ship Lease to participate in global seaborne commerce while its charterers manage cargo transportation and logistics.

Global Ship Lease was founded in 2007 and completed its initial public offering in 2008.