Diamond Offshore Drilling, Inc. (DO) Cut to “Hold” at Zacks Investment Research
Diamond Offshore Drilling, Inc. (NYSE:DO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Friday.
According to Zacks, “Diamond Offshore is a leading offshore contract driller with services across the world. The company boasts solid fundamentals with significant free cash flow potential and a clean balance sheet. Most importantly, 94% of the rig days during 2017 for the company’s ultra-deepwater units are being booked by top-tier global customers, which is likely to fetch with steady cashflows. Effective cost-control initiatives and improving rig efficiencies also added to the positives. However, the introduction of new and more stringent regulations following the Gulf of Mexico oil spill has made many projects less profitable. Also, over the past year, the company lost 14.3% value, following the trend of industry’s 25.4% decline.”
A number of other research firms have also recently weighed in on DO. UBS AG raised Diamond Offshore Drilling from a “neutral” rating to a “buy” rating and boosted their price target for the stock from $12.00 to $15.00 in a report on Monday, September 25th. Jefferies Group LLC set a $14.00 price target on Diamond Offshore Drilling and gave the stock a “hold” rating in a report on Saturday, July 1st. Clarkson Capital raised Diamond Offshore Drilling from a “neutral” rating to a “buy” rating in a report on Friday, September 1st. Seaport Global Securities reissued a “sell” rating on shares of Diamond Offshore Drilling in a report on Monday, July 31st. Finally, Cowen and Company reissued a “hold” rating and issued a $11.00 price target on shares of Diamond Offshore Drilling in a report on Tuesday, September 5th. Nine analysts have rated the stock with a sell rating, fourteen have given a hold rating and five have given a buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus price target of $14.60.
Shares of Diamond Offshore Drilling (NYSE DO) traded down 1.271% on Friday, hitting $15.145. The stock had a trading volume of 1,250,953 shares. Diamond Offshore Drilling has a one year low of $10.06 and a one year high of $22.65. The firm’s 50-day moving average is $13.97 and its 200-day moving average is $12.89. The company has a market cap of $2.08 billion, a price-to-earnings ratio of 12.313 and a beta of 1.19.
Diamond Offshore Drilling (NYSE:DO) last released its quarterly earnings results on Monday, July 31st. The offshore drilling services provider reported $0.45 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.24 by $0.21. Diamond Offshore Drilling had a return on equity of 5.77% and a net margin of 11.19%. The company had revenue of $399.30 million during the quarter, compared to analysts’ expectations of $381.50 million. During the same period in the previous year, the firm posted $0.16 earnings per share. The business’s revenue for the quarter was up 2.7% compared to the same quarter last year. On average, analysts expect that Diamond Offshore Drilling will post $0.91 EPS for the current fiscal year.
Hedge funds and other institutional investors have recently modified their holdings of the company. Lazard Asset Management LLC boosted its position in shares of Diamond Offshore Drilling by 10.2% in the first quarter. Lazard Asset Management LLC now owns 6,685 shares of the offshore drilling services provider’s stock worth $111,000 after buying an additional 620 shares during the period. Advantus Capital Management Inc boosted its position in shares of Diamond Offshore Drilling by 3.0% in the first quarter. Advantus Capital Management Inc now owns 8,254 shares of the offshore drilling services provider’s stock worth $138,000 after buying an additional 242 shares during the period. Amalgamated Bank purchased a new stake in shares of Diamond Offshore Drilling in the first quarter worth about $170,000. Raymond James Trust N.A. purchased a new stake in shares of Diamond Offshore Drilling in the second quarter worth about $118,000. Finally, BlueMountain Capital Management LLC purchased a new stake in shares of Diamond Offshore Drilling in the second quarter worth about $119,000.
About Diamond Offshore Drilling
Diamond Offshore Drilling, Inc provides contract drilling services to the energy industry. As of December 31, 2016, the Company had a fleet of 24 offshore drilling rigs. As of December 31, 2016, its fleet consisted of four drillships, 19 semisubmersible rigs and one jack-up rig. Its fleet enables it to offer a range of services, primarily in the floater market, including ultra-deepwater, deepwater and mid-water.
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