Should I buy ASC

**Ardmore Shipping (ASC)** presents a mixed picture for investors considering a purchase. Here's an analysis based on recent performance and market indicators: 1. **Recent Performance**: - **Earnings Beat**: Ardmore Shipping reported stronger-than-expected earnings for Q2 2025, with adjusted earnings per share (EPS) of €0.22, surpassing the forecast of €0.19. This represents a 15.79% positive surprise. - **Revenue Surge**: The company reported revenue of €72.05 million, which was significantly higher than the expected €44.92 million, marking a 60.4% surprise. - **Stock Reaction**: Following the earnings announcement, Ardmore’s stock rose by 2.84% in pre-market trading. 2. **Market Indicators**: - **Technical Analysis**: The stock is trading below its 5-day ($10.68), 10-day ($10.64), and 20-day ($10.63) moving averages, indicating a short-term downward trend. - **Resistance and Support Levels**: The resistance level is at $10.99, and the support level is at $10.17. The stock is trading closer to the support level, which could be a point of interest if the price were to move below this level. - **MACD (Moving Average Convergence Divergence)** is at -0.02, which is a relatively low value and could suggest a lack of momentum in either direction. - **RSI (Relative Strength Index)** is at 54.79, which is neither overbought nor oversold and suggests a balanced momentum. - **Bollinger Bands** are at $10.63, which is the lower band, indicating potential volatility. |code|Ticker|Name|Date|Support Level|Resistance Level|market_code| |---|---|---|---|---|---|---| |ASC|ASC.N|Ardmore Shipping|20250819|10.1700|10.9900|169| |code|Ticker|Name|Date|Moving Average|market_code| |---|---|---|---|---|---| |ASC|ASC.N|Ardmore Shipping|20250819|10.6820|169| |code|Ticker|Name|Date|Boll|RSI|KDJ|MACD|market_code| |---|---|---|---|---|---|---|---|---| |ASC|ASC.N|Ardmore Shipping|20250819|10.6315|54.7931|66.3657|-0.0216|169| 4. **Market Sentiment and Analyst Ratings**: - **Analyst Optimism**: Despite the recent volatility, analysts maintain a "Buy" recommendation with price targets between $12.20 and $14.00. - **Financial Health Indicators**: Ardmore Shipping maintains a "GREAT" overall score and is considered undervalued based on comprehensive Fair Value calculations. - **Dividend Yield**: The company has a history of paying dividends, with a recent cash dividend for the quarter ended June 30, 2024. 5. **Risks and Considerations**: - **Geopolitical Tensions**: The shipping industry is sensitive to geopolitical shifts, which could impact trade flows and market stability. - **Supply Chain Disruptions**: Potential disruptions could affect operational efficiency. - **Economic Downturns**: Decreased demand for shipping services could lead to reduced revenues. **Conclusion**: Based on the earnings beat, technical indicators, and analyst sentiment, Ardmore Shipping appears to be a solid candidate for investors looking for potential upside. However, the mixed technical signals and broader market risks suggest a cautious approach. Investors should consider their risk tolerance and investment horizon before making a decision.