Global Ship Lease Inc. [NYSE: GSL] stock went on an upward path that rose over 16.85% on Friday, amounting to a one-week price increase of more than 17.58%. The company report on February 9, 2021 that Global Ship Lease Announces Agreement to Acquire Seven Post-Panamax Containerships on Multi-Year Charters.
6,000 TEU containerships to be employed on three to five year charters with leading liner operators.
Global Ship Lease, Inc. (NYSE: GSL) (the “Company” or “Global Ship Lease”) announced that it has agreed to purchase and charter back seven 6,000 TEU Post-Panamax containerships with an average age of approximately 20 years for an aggregate purchase price of $116 million. The charters are to leading liner operators for a minimum firm period of 36 months each, followed by two one-year extensions at charterer’s option. The vessels are expected to generate aggregate Adjusted EBITDA of approximately $95 million over the average firm period of 3.1 years, implying a strongly accretive average Purchase Price / Annual Adjusted EBITDA multiple of approximately 4.0x. If all options are exercised, the vessels are expected to generate approximately $126 million of Adjusted EBITDA. With these additions, the Company’s fleet will comprise 50 vessels with a total capacity of 287,280 TEU.
Over the last 12 months, GSL stock rose by 95.80%. The one-year Global Ship Lease Inc. stock forecast points to a potential upside of 16.39. The average equity rating for GSL stock is currently 1.50, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $464.89 million, with 17.74 million shares outstanding and 15.00 million shares in the current float. Compared to the average trading volume of 326.62K shares, GSL stock reached a trading volume of 2148058 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Global Ship Lease Inc. [GSL]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GSL shares is $18.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GSL stock is a recommendation set at 1.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Jefferies have made an estimate for Global Ship Lease Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on February 12, 2021. While these analysts kept the previous recommendation, B. Riley FBR raised their target price to Buy. The new note on the price target was released on September 30, 2019, representing the official price target for Global Ship Lease Inc. stock. Previously, the target price had yet another raise to $9, while Clarksons Platou analysts kept a Buy rating on GSL stock.
The Average True Range (ATR) for Global Ship Lease Inc. is set at 1.00, with the Price to Sales ratio for GSL stock in the period of the last 12 months amounting to 1.66. The Price to Book ratio for the last quarter was 0.60, with the Price to Cash per share for the same quarter was set at 3.20. Price to Free Cash Flow for GSL in the course of the last twelve months was 4.45 with Quick ratio for the last quarter at 1.00.
GSL Stock Performance Analysis:
Global Ship Lease Inc. [GSL] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 17.58. With this latest performance, GSL shares dropped by -7.44% in over the last four-week period, additionally plugging by 189.98% over the last 6 months – not to mention a rise of 95.80% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GSL stock in for the last two-week period is set at 65.28, with the RSI for the last a single of trading hit 70.88, and the three-weeks RSI is set at 63.30 for Global Ship Lease Inc. [GSL]. The present Moving Average for the last 50 days of trading for this stock 12.42, while it was recorded at 13.49 for the last single week of trading, and 7.37 for the last 200 days.
Insight into Global Ship Lease Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Global Ship Lease Inc. [GSL] shares currently have an operating margin of +42.73 and a Gross Margin at +46.11. Global Ship Lease Inc.’s Net Margin is presently recorded at +15.26.
Return on Total Capital for GSL is now 8.94, given the latest momentum, and Return on Invested Capital for the company is 3.40. Return on Equity for this stock inclined to 11.02, with Return on Assets sitting at 3.08. When it comes to the capital structure of this company, Global Ship Lease Inc. [GSL] has a Total Debt to Total Equity ratio set at 220.69. Additionally, GSL Total Debt to Total Capital is recorded at 68.82, with Total Debt to Total Assets ending up at 66.35. Long-Term Debt to Equity for the company is recorded at 199.15, with the Long-Term Debt to Total Capital now at 62.10.
Reflecting on the efficiency of the workforce at the company, Global Ship Lease Inc. [GSL] managed to generate an average of $5,691,143 per employee. Receivables Turnover for the company is 42.03 with a Total Asset Turnover recorded at a value of 0.20.Global Ship Lease Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 1.00.
GSL Stock EPS
With the latest financial reports released by the company, Global Ship Lease Inc. posted 0.26/share EPS, while the average EPS was predicted by analysts to be reported at 0.32/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -18.80%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for GSL. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Global Ship Lease Inc. go to 12.00%.
Global Ship Lease Inc. [GSL] Insider Position Details
There are presently around $89 million, or 21.80% of GSL stock, in the hands of institutional investors. The top three institutional holders of GSL stocks are: B. RILEY FINANCIAL, INC. with ownership of 2,196,224, which is approximately 0% of the company’s market cap and around 79.00% of the total institutional ownership; NOKOMIS CAPITAL, L.L.C., holding 1,228,107 shares of the stock with an approximate value of $18.48 million in GSL stocks shares; and PUNCH & ASSOCIATES INVESTMENT MANAGEMENT, INC., currently with $12.87 million in GSL stock with ownership of nearly 0% of the company’s market capitalization.
Positions in Global Ship Lease Inc. stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 8 institutional holders increased their position in Global Ship Lease Inc. [NYSE:GSL] by around 331,402 shares. Additionally, 5 investors decreased positions by around 50,454 shares, while 7 investors held positions by with 5,557,419 shares. The mentioned changes placed institutional holdings at 5,939,275 shares, according to the latest SEC report filing. GSL stock had 4 new institutional investments in for a total of 85,409 shares, while 2 institutional investors sold positions of 16,203 shares during the same period.