NVGS - Navigator flies higher on easy Q1 sales beat planned new dividend

2023-05-23 10:56:20 ET

Navigator Holdings ( NYSE: NVGS ) +14.1% after reporting Q1 revenues that exceeded estimates and announced plans for a dividend and new buyback program.

Navigator ( NVGS ) announced a new capital return policy including a new share repurchase plan for as much as $25M in common stock, as well as a dividend policy to start in Q2 paying a quarterly cash dividend of $0.05/share, and a future return additional capital via "additional cash dividends and/or share repurchases, such that the fixed element and, if any, the variable component, together, equal 25% of net income for the applicable quarter."

Q1 adjusted EBITDA rose to a record $69M compared to $55.7M for the year-ago quarter.

Q1 average daily TCE rate was $25,620 compared to $22,933 a year earlier, and fleet utilization rose to 96.2% from 89.5% in the prior-year period.

In reaction to the new dividend policy, Jefferies analyst Omar Nokta reiterated his Buy rating and raised his price target to $18 from $16.

More on Navigator Holdings:

• Financial and valuation comparison to sector peers
• Analysis: Navigator Holdings: Key Updates On A Top Pick
• Stock price return: Up 29.5% YTD, up 6% in the past 12 months

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