Zacks Investment Research upgraded shares of Diamond Offshore Drilling (NYSE:DO) from a hold rating to a buy rating in a research note published on Tuesday. Zacks Investment Research currently has $23.00 price objective on the offshore drilling services provider’s stock.

According to Zacks, “Diamond Offshore is a leading offshore contract driller with services across the world. Diamond Offshore’s technologically advanced and versatile drilling fleet enables it to stay ahead of its peers in a market, where offshore rig demand is expected to surge through 2025. The company boasts solid fundamentals with significant free cash flow potential and a clean balance sheet. This enhances the possibility of further share buybacks and/or special dividends by the company in the years ahead. At the end of the second quarter of 2018, the company had a total contracted backlog of $2.2 billion, reflecting 23 rig years of work. This not only reflects steady demand from clients but also offers an unmatched level of earnings and cash flow visibility. The cost-control initiatives of Diamond Offshore are also promising.”

Several other equities analysts have also issued reports on DO. HSBC upgraded shares of Diamond Offshore Drilling from a hold rating to a buy rating and lifted their target price for the company from $18.80 to $20.80 in a report on Friday, September 21st. Royal Bank of Canada upgraded shares of Diamond Offshore Drilling from a sector perform rating to an outperform rating and set a $23.00 target price for the company in a report on Thursday, September 20th. Morgan Stanley assumed coverage on shares of Diamond Offshore Drilling in a report on Tuesday, September 18th. They set an underweight rating and a $15.00 target price for the company. Barclays lifted their target price on shares of Diamond Offshore Drilling from $13.00 to $14.00 and gave the company an underweight rating in a report on Thursday, August 9th. Finally, TheStreet lowered shares of Diamond Offshore Drilling from a c- rating to a d+ rating in a report on Monday, July 30th. Ten research analysts have rated the stock with a sell rating, seven have issued a hold rating, three have given a buy rating and one has assigned a strong buy rating to the company’s stock. The company has a consensus rating of Hold and an average price target of $16.60.

Shares of DO opened at $19.41 on Tuesday. The company has a quick ratio of 4.23, a current ratio of 4.23 and a debt-to-equity ratio of 0.53. Diamond Offshore Drilling has a one year low of $13.64 and a one year high of $21.92. The stock has a market capitalization of $2.75 billion, a price-to-earnings ratio of 23.67 and a beta of 1.11.

Diamond Offshore Drilling (NYSE:DO) last issued its quarterly earnings data on Monday, July 30th. The offshore drilling services provider reported ($0.33) EPS for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.39) by $0.06. Diamond Offshore Drilling had a negative net margin of 5.57% and a negative return on equity of 1.06%. The business had revenue of $268.90 million during the quarter, compared to analyst estimates of $279.83 million. During the same period last year, the business posted $0.45 earnings per share. Diamond Offshore Drilling’s quarterly revenue was down 32.7% compared to the same quarter last year. Sell-side analysts predict that Diamond Offshore Drilling will post -1.13 EPS for the current fiscal year.

In related news, SVP David L. Roland sold 1,744 shares of the firm’s stock in a transaction that occurred on Tuesday, July 31st. The shares were sold at an average price of $19.73, for a total transaction of $34,409.12. Following the completion of the sale, the senior vice president now owns 9,194 shares of the company’s stock, valued at $181,397.62. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.03% of the stock is owned by company insiders.

A number of large investors have recently bought and sold shares of the business. Guggenheim Capital LLC grew its position in Diamond Offshore Drilling by 1.3% in the 1st quarter. Guggenheim Capital LLC now owns 215,139 shares of the offshore drilling services provider’s stock worth $3,153,000 after purchasing an additional 2,751 shares during the period. Mutual of America Capital Management LLC grew its position in Diamond Offshore Drilling by 5.6% in the 2nd quarter. Mutual of America Capital Management LLC now owns 55,655 shares of the offshore drilling services provider’s stock worth $1,161,000 after purchasing an additional 2,975 shares during the period. United Services Automobile Association grew its position in Diamond Offshore Drilling by 25.5% in the 2nd quarter. United Services Automobile Association now owns 16,724 shares of the offshore drilling services provider’s stock worth $349,000 after purchasing an additional 3,398 shares during the period. Northwestern Mutual Investment Management Company LLC grew its position in Diamond Offshore Drilling by 56.2% in the 1st quarter. Northwestern Mutual Investment Management Company LLC now owns 13,197 shares of the offshore drilling services provider’s stock worth $193,000 after purchasing an additional 4,750 shares during the period. Finally, Russell Investments Group Ltd. bought a new stake in Diamond Offshore Drilling in the 2nd quarter worth approximately $108,000.

About Diamond Offshore Drilling

Diamond Offshore Drilling, Inc provides contract drilling services to the energy industry worldwide. It provides services in floater market, including ultra-deepwater, deepwater, and mid-water. The company operates a fleet of 17 offshore drilling rigs, which comprises 4 drillships, 7 ultra-deepwater, 4 deepwater, and 2 mid-water semisubmersibles.

See Also: Leveraged Buyout (LBO)

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Analyst Recommendations for Diamond Offshore Drilling (NYSE:DO)

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