Diamond Offshore Drilling (DO) Stock Rating Upgraded by Zacks Investment Research
Zacks Investment Research upgraded shares of Diamond Offshore Drilling (NYSE:DO) 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.”
Several other research analysts have also recently issued reports on DO. initiated coverage on shares of Diamond Offshore Drilling in a report on Thursday, October 19th. They issued a hold rating and a $15.80 price objective for the company. Cowen set a $11.00 price objective on shares of Diamond Offshore Drilling and gave the company a hold rating in a report on Wednesday, October 18th. FBR & Co set a $13.00 price objective on shares of Diamond Offshore Drilling and gave the company a hold rating in a report on Monday, October 30th. Jefferies Group set a $15.00 price objective on shares of Diamond Offshore Drilling and gave the company a hold rating in a report on Monday, October 30th. Finally, UBS Group increased their price objective on shares of Diamond Offshore Drilling from $15.00 to $19.00 and gave the company a buy rating in a report on Friday, November 3rd. Twelve analysts have rated the stock with a sell rating, twelve have given a hold rating and two have issued a buy rating to the company’s stock. The company has an average rating of Hold and an average target price of $14.49.
Diamond Offshore Drilling (NYSE:DO) last posted its earnings results on Monday, February 12th. The offshore drilling services provider reported ($0.05) EPS for the quarter, topping the consensus estimate of ($0.06) by $0.01. The firm had revenue of $346.20 million during the quarter, compared to analysts’ expectations of $331.98 million. Diamond Offshore Drilling had a net margin of 1.23% and a return on equity of 2.96%. Diamond Offshore Drilling’s quarterly revenue was down 11.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.27 EPS. sell-side analysts forecast that Diamond Offshore Drilling will post -0.14 earnings per share for the current year.
In related news, Director Charles Fabrikant sold 1,500 shares of the stock in a transaction that occurred on Thursday, December 28th. The shares were sold at an average price of $18.55, for a total transaction of $27,825.00. Following the completion of the sale, the director now directly owns 1,000 shares of the company’s stock, valued at $18,550. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.03% of the stock is owned by corporate insiders.
A number of hedge funds have recently added to or reduced their stakes in DO. Victory Capital Management Inc. purchased a new stake in shares of Diamond Offshore Drilling in the 3rd quarter valued at approximately $126,000. M&T Bank Corp purchased a new stake in shares of Diamond Offshore Drilling in the 2nd quarter valued at approximately $139,000. Ladenburg Thalmann Financial Services Inc. lifted its position in shares of Diamond Offshore Drilling by 331.9% in the 4th quarter. Ladenburg Thalmann Financial Services Inc. now owns 7,641 shares of the offshore drilling services provider’s stock valued at $142,000 after acquiring an additional 5,872 shares in the last quarter. Intl Fcstone Inc. purchased a new stake in shares of Diamond Offshore Drilling in the 2nd quarter valued at approximately $169,000. Finally, Itau Unibanco Holding S.A. purchased a new stake in shares of Diamond Offshore Drilling in the 4th quarter valued at approximately $171,000.
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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