The Bermuda-based shipping company announced it entered definitive agreements with investors to buy a total of 23,076,924 of its stock at $6.50 a share in a direct offering.
After paying placement fees DHT expects net proceeds of about $145.5 million from the offering.. The company will use the proceeds from the offering, along with proceeds from its private convertible debt financing, to fund it acquisition of Singapore-based Samco Shipholding.
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The offering is expected to close on or about Sept. 15.
TheStreet Ratings team rates DHT HOLDINGS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DHT HOLDINGS INC (DHT) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 2.4%. Since the same quarter one year prior, revenues rose by 27.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 17.84, which clearly demonstrates the ability to cover short-term cash needs.
- 42.13% is the gross profit margin for DHT HOLDINGS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.95% trails the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, DHT HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $10.09 million or 29.27% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: DHT Ratings Report
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