Diamond Offshore Drilling Given Neutral Rating at Zacks (DO)
Diamond Offshore Drilling (NYSE:DO)‘s stock had its “neutral” rating reaffirmed by Zacks in a note issued to investors on Wednesday. They currently have a $46.00 price target on the stock. Zacks‘s target price indicates a potential upside of 4.76% from the stock’s previous close.
Zacks’ analyst wrote, “We are maintaining our Neutral recommendation on Diamond Offshore Drilling Inc. The company’s second-quarter earnings beat the Zacks Consensus Estimate. We appreciate the company’s financial discipline, which is one of the best in the industry. Diamond Offshore Drilling is also looking to increase its footprint in emerging markets (like Australia, Brazil and West Africa) to reap the benefits from recently discovered deepwater fields. Furthermore, improving activity in the North Sea positions the company well. However, we remain on the sidelines at this stage due to the volatile oil and gas price scenario, geopolitical risks related to international operations, the uneven deepwater markets and expectations of a gradual decline in deepwater rates.”
Diamond Offshore Drilling (NYSE:DO) traded up 0.07% on Wednesday, hitting $43.94. The stock had a trading volume of 445,344 shares. Diamond Offshore Drilling has a 52-week low of $43.69 and a 52-week high of $66.34. The stock’s 50-day moving average is $47.46 and its 200-day moving average is $48.36. The company has a market cap of $6.026 billion and a price-to-earnings ratio of 14.37.
Diamond Offshore Drilling (NYSE:DO) last posted its quarterly earnings results on Thursday, July 24th. The company reported $0.58 EPS for the quarter, meeting the Thomson Reuters consensus estimate of $0.58. The company had revenue of $692.24 million for the quarter, compared to the consensus estimate of $690.33 million. During the same quarter in the prior year, the company posted $1.33 earnings per share. The company’s quarterly revenue was down 8.7% on a year-over-year basis. Analysts expect that Diamond Offshore Drilling will post $3.17 EPS for the current fiscal year.
The company also recently declared a special dividend, which is scheduled for Tuesday, September 2nd. Shareholders of record on Wednesday, August 6th will be given a dividend of $0.75 per share. The ex-dividend date of this dividend is Monday, August 4th.
Several other analysts have also recently commented on the stock. Analysts at Deutsche Bank downgraded shares of Diamond Offshore Drilling from a “hold” rating to a “sell” rating in a research note on Monday, August 4th. They now have a $34.00 price target on the stock, down previously from $60.00. Separately, analysts at Nordea Equity Research initiated coverage on shares of Diamond Offshore Drilling in a research note on Tuesday, July 29th. They set a “sell” rating and a $38.00 price target on the stock. Finally, analysts at Cowen and Company cut their price target on shares of Diamond Offshore Drilling from $45.00 to $43.00 in a research note on Tuesday, July 29th. They now have a “market perform” rating on the stock. Six analysts have rated the stock with a sell rating, ten have issued a hold rating and two have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus price target of $49.55.
Diamond Offshore Drilling, Inc is a global offshore oil and gas drilling contractor. The Company has a fleet of 44 offshore drilling rigs, consisting of 32 semisubmersibles, seven jack-ups and five dynamically positioned drillships, four of which are under construction.
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