Diamond Offshore Drilling Inc. (DO) Upgraded to Hold by Zacks Investment Research
Diamond Offshore Drilling Inc. (NYSE:DO) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Thursday.
According to Zacks, “Diamond Offshore Drilling boasts solid fundamentals with significant free cash flow potential and a clean balance sheet. Moreover, the company intends to increase its footprint in emerging markets (like Australia, Brazil and West Africa) to reap benefits from the recently discovered deepwater fields. This should work well for the company in the long term. Moreover, Diamond Offshore Drilling’s decision to discontinue dividends will lead to annual savings of $69 million and result in more efficient operations. However, near-term headwinds continue to weigh on it. 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 are concerns going forward.”
A number of other research analysts have also issued reports on the stock. Vetr lowered shares of Diamond Offshore Drilling from a “strong-buy” rating to a “buy” rating and set a $28.66 price target on the stock. in a research note on Monday, July 18th. Bank of America Corp. initiated coverage on shares of Diamond Offshore Drilling in a research note on Sunday, June 19th. They set a “buy” rating and a $24.32 price target on the stock. Jefferies Group restated a “hold” rating on shares of Diamond Offshore Drilling in a research note on Monday, July 11th. Evercore ISI restated a “hold” rating on shares of Diamond Offshore Drilling in a research note on Thursday, June 30th. Finally, Barclays PLC upped their price target on shares of Diamond Offshore Drilling from $14.00 to $15.00 and gave the company an “underweight” rating in a research note on Monday, August 8th. Six research analysts have rated the stock with a sell rating, seventeen have given a hold rating and six have issued a buy rating to the company. The stock has a consensus rating of “Hold” and an average price target of $20.20.
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Shares of Diamond Offshore Drilling (NYSE:DO) traded down 1.49% on Thursday, hitting $17.18. 1,404,135 shares of the stock traded hands. The company’s market cap is $2.36 billion. The stock has a 50 day moving average of $16.77 and a 200 day moving average of $21.66. Diamond Offshore Drilling has a one year low of $14.18 and a one year high of $26.72.
Diamond Offshore Drilling (NYSE:DO) last posted its earnings results on Monday, August 1st. The offshore drilling services provider reported $0.16 EPS for the quarter, beating the Zacks’ consensus estimate of $0.08 by $0.08. Diamond Offshore Drilling had a negative net margin of 30.20% and a positive return on equity of 9.12%. The company earned $388.75 million during the quarter, compared to analysts’ expectations of $374.17 million. During the same quarter in the prior year, the company posted $0.66 earnings per share. Diamond Offshore Drilling’s revenue for the quarter was down 38.7% compared to the same quarter last year. Equities analysts anticipate that Diamond Offshore Drilling will post $1.01 earnings per share for the current year.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Seven Eight Capital LLC acquired a new position in shares of Diamond Offshore Drilling during the first quarter worth $327,000. Babson Capital Management LLC boosted its position in shares of Diamond Offshore Drilling by 7.3% in the first quarter. Babson Capital Management LLC now owns 89,763 shares of the offshore drilling services provider’s stock worth $1,951,000 after buying an additional 6,100 shares during the period. Clark Capital Management Group Inc. boosted its position in shares of Diamond Offshore Drilling by 36.6% in the first quarter. Clark Capital Management Group Inc. now owns 179,279 shares of the offshore drilling services provider’s stock worth $3,896,000 after buying an additional 48,001 shares during the period. Jacobs Levy Equity Management Inc. boosted its position in shares of Diamond Offshore Drilling by 91.4% in the first quarter. Jacobs Levy Equity Management Inc. now owns 97,860 shares of the offshore drilling services provider’s stock worth $2,126,000 after buying an additional 46,740 shares during the period. Finally, Quadrature Capital Ltd acquired a new position in shares of Diamond Offshore Drilling during the first quarter worth $1,813,000.
Diamond Offshore Drilling Company Profile
Diamond Offshore Drilling, Inc is engaged in offshore drilling and providing contract drilling services to the energy industry. The Company has a fleet of approximately 30 offshore drilling rigs, such as semisubmersibles, jack-ups and dynamically positioned (DP) drillships. Its fleet offers a range of services around the world in the floater market (ultra-deepwater, deepwater and mid-water).
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