Zacks Investment Research Upgrades Diamond Offshore Drilling (DO) to “Hold”

Diamond Offshore Drilling (NYSE:DO) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Wednesday.

According to Zacks, “Diamond Offshore is a leading offshore contract driller with services across the world. Most importantly, operational efficiency of the company’s fleet was 98.8% in the fourth quarter, compared to 94.3% in the third quarter of 2017. This was mainly due to high level of efficiency in ultra deepwater segment. Its shares outperformed the industry in the last six months.  The excellent financial health of the company is also noteworthy. However the introduction of new and more stringent regulations following the Gulf of Mexico oil spill has made many projects less profitable. Moreover, the company reported fourth-quarter 2017 adjusted loss of 5 cents per share compared to the Zacks Consensus Estimate of a breakeven. The company reported earnings of 85 cents per share in the year-earlier quarter. The result was affected due to lower dayrates and rig utilization from deepwater floaters, mid-water floaters and jackups.”

DO has been the subject of a number of other research reports. ValuEngine raised Diamond Offshore Drilling from a “buy” rating to a “strong-buy” rating in a research report on Sunday, December 31st. Clarkson Capital cut Diamond Offshore Drilling from a “buy” rating to a “neutral” rating in a research report on Thursday, January 18th. Cowen set a $18.00 price target on Diamond Offshore Drilling and gave the stock a “hold” rating in a research report on Thursday, January 11th. Royal Bank of Canada set a $19.00 price target on Diamond Offshore Drilling and gave the stock a “hold” rating in a research report on Thursday, December 21st. Finally, Piper Jaffray Companies reaffirmed an “underweight” rating on shares of Diamond Offshore Drilling in a research report on Thursday, January 11th. Twelve investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and two have issued a buy rating to the company. Diamond Offshore Drilling has an average rating of “Hold” and a consensus target price of $14.59.

Shares of Diamond Offshore Drilling (NYSE:DO) opened at $14.05 on Wednesday. The stock has a market capitalization of $1,930.00, a price-to-earnings ratio of 108.08 and a beta of 1.13. Diamond Offshore Drilling has a 12-month low of $10.06 and a 12-month high of $20.41. The company has a current ratio of 3.58, a quick ratio of 3.58 and a debt-to-equity ratio of 0.52.

Diamond Offshore Drilling (NYSE:DO) last announced its quarterly earnings results on Monday, February 12th. The offshore drilling services provider reported ($0.05) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.01. Diamond Offshore Drilling had a return on equity of 2.96% and a net margin of 1.23%. The company had revenue of $346.20 million during the quarter, compared to analysts’ expectations of $331.98 million. During the same quarter in the previous year, the firm earned $0.27 earnings per share. The business’s quarterly revenue was down 11.7% compared to the same quarter last year. equities analysts forecast that Diamond Offshore Drilling will post -0.08 EPS for the current year.

In related news, Director Charles Fabrikant sold 1,500 shares of the business’s stock in a transaction dated Thursday, December 28th. The stock was sold at an average price of $18.55, for a total transaction of $27,825.00. Following the completion of the transaction, the director now owns 1,000 shares of the company’s stock, valued at approximately $18,550. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.03% of the stock is currently owned by insiders.

Institutional investors and hedge funds have recently modified their holdings of the stock. Victory Capital Management Inc. bought a new position in Diamond Offshore Drilling during the third quarter valued at about $126,000. M&T Bank Corp bought a new position in Diamond Offshore Drilling during the second quarter valued at about $139,000. Intl Fcstone Inc. bought a new position in Diamond Offshore Drilling during the second quarter valued at about $169,000. Itau Unibanco Holding S.A. bought a new position in Diamond Offshore Drilling during the fourth quarter valued at about $171,000. Finally, Wright Investors Service Inc. bought a new position in Diamond Offshore Drilling during the fourth quarter valued at about $204,000.

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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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Analyst Recommendations for Diamond Offshore Drilling (NYSE:DO)

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