Ardmore Shipping: The Dividend Policy Doesn’t Deserve A Premium Valuation, Sell (Rating Downgrade)

Summary:

• Ardmore Shipping’s stock has risen 15% following Q1 results, but the author recommends downgrading it to a sell.
• The product tanker outlook remains strong due to ongoing disruptions and increasing oil demand.
• Ardmore Shipping’s financial position is robust, but the stock is trading above its net asset value and lacks attractive shareholder returns.

Ardmore Shipping (NYSE:ASC) is a shipping company specializing in the ownership and operation of small product and chemical tankers. ASC owns a fleet of 18 MR eco product tankers and 4 handysize tankers. Additionally, the company operates

Analyst’s Disclosure: I/we have a beneficial short position in the shares of ASC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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