Danaos Corporation (DAC) stock gained in the Current Market; here is why?

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Danaos Corporation (DAC) stock gained in the current market after the Company announced that they have entered into new charted deals in a press release. DAC is valued at $78.63, gaining more than 6.19% from the previously closed value. At the end of the last trading session, the stock of DAC closed at $74.03. The stock traded volume in the previous trading session was around 308.13K shares.

Reason for the DAC stock gain

Danaos Corporation (DAC) announced in a press release today that they have entered into new charter deals for 11 of its vessels. They range between 2,500 to 10,000 TEU that have major liner companies. It will significantly enhance the cash flow visibility and charter coverage. According to the revenue weighted, the average contract duration of these charters is 4.7 years.

Approximately $870 million was added to the Company’s contracted revenue backlog or the contracted EBITDA of roughly $700 million. Including these charters, as of December 31, 2021, the total contracted, operating revenue was $2.8 billion. It has an average contracted charter period of four years remaining. Besides, the working days are now 95% for 2022, 77% for 2023, and 57% for 2024 in the contract.

Danaos Corporation (DAC) has also agreed to sell two 20-year-old 6,422 TEU vessels at $130 million. The buyers expect them delivered in November 2022. On July 1, 2021, Danaos Corporation (DAC) acquired these two vessels in a consolidation deal of Gemini Shipholdings Corporation, valued at $73 million.

Effect on the DAC stock

DAC gained in the market after the Company announced entering into 11 new charted contracts. The news positively affected the stock, and investors are taking a considerable interest In DAC. This month’s growth was massive, so the deal will bring more gains for the store.

Conclusion

Danaos Corporation’s (DAC) revenue will increase with this significant development, ultimately increasing its valuation. The stock price is also in a positive trend, so the stock could be a good choice for the investors in the long run.

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