Diamond Offshore Drilling Inc. (DO) Upgraded by Zacks Investment Research to Hold
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.”
Other equities research analysts have also recently issued reports about the stock. Vetr cut shares of Diamond Offshore Drilling from a strong-buy rating to a buy rating and set a $28.11 price objective for the company. in a report on Monday, July 4th. Credit Suisse Group AG reiterated a hold rating and issued a $18.00 price objective on shares of Diamond Offshore Drilling in a report on Wednesday, August 3rd. Royal Bank Of Canada decreased their price objective on shares of Diamond Offshore Drilling from $29.00 to $23.00 and set a sector perform rating for the company in a report on Friday, August 12th. Jefferies Group reissued a hold rating and set a $22.00 target price on shares of Diamond Offshore Drilling in a research report on Wednesday, August 17th. Finally, Evercore ISI raised shares of Diamond Offshore Drilling from a hold rating to a buy rating and cut their target price for the stock from $22.00 to $19.00 in a research report on Tuesday, September 20th. Six equities research analysts have rated the stock with a sell rating, seventeen have issued a hold rating and six have issued a buy rating to the company. Diamond Offshore Drilling presently has an average rating of Hold and a consensus price target of $20.20.
Diamond Offshore Drilling (NYSE:DO) traded up 0.06% during trading on Thursday, reaching $17.15. The company had a trading volume of 1,036,258 shares. The stock’s market cap is $2.35 billion. The firm has a 50-day moving average price of $16.72 and a 200 day moving average price of $21.63. Diamond Offshore Drilling has a 12-month low of $14.18 and a 12-month high of $26.72.
Diamond Offshore Drilling (NYSE:DO) last issued its quarterly earnings data on Monday, August 1st. The offshore drilling services provider reported $0.16 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.08 by $0.08. The firm earned $388.75 million during the quarter, compared to analysts’ expectations of $374.17 million. Diamond Offshore Drilling had a negative net margin of 30.20% and a positive return on equity of 9.12%. Diamond Offshore Drilling’s revenue for the quarter was down 38.7% on a year-over-year basis. During the same period in the prior year, the company posted $0.66 earnings per share. Equities research analysts predict that Diamond Offshore Drilling will post $1.01 EPS for the current fiscal year.
A number of large investors have recently bought and sold shares of DO. Thompson Rubinstein Investment Management Inc. OR raised its stake in Diamond Offshore Drilling by 34.0% in the third quarter. Thompson Rubinstein Investment Management Inc. OR now owns 178,379 shares of the offshore drilling services provider’s stock valued at $3,141,000 after buying an additional 45,280 shares during the period. New England Research & Management Inc. purchased a new stake in Diamond Offshore Drilling during the third quarter valued at $291,000. BNP Paribas Arbitrage SA raised its stake in Diamond Offshore Drilling by 10.5% in the third quarter. BNP Paribas Arbitrage SA now owns 31,579 shares of the offshore drilling services provider’s stock valued at $556,000 after buying an additional 2,990 shares during the period. Macquarie Group Ltd. purchased a new stake in Diamond Offshore Drilling during the second quarter valued at $951,000. Finally, Mason Street Advisors LLC purchased a new stake in Diamond Offshore Drilling during the second quarter valued at $211,000.
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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