Borr Drilling (NYSE:BORR) Downgraded to Strong Sell Rating by Zacks Research

Key Points

• Zacks Research downgraded Borr Drilling to “strong sell” from “hold,” although the broader analyst consensus remains “hold” with an average price target of $5.27.
• Borr Drilling’s latest quarterly results missed expectations, with an adjusted loss of $0.79 per share versus the $0.21 loss analysts expected and revenue of $232.3 million versus the $246.0 million consensus.
• The stock opened at $4.23 and has declined 2.9%; the company also carries substantial leverage, with a debt-to-equity ratio of 2.58, while director Jeffrey Currie purchased 125,000 shares worth approximately $501,250.

Borr Drilling (NYSE:BORR - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Tuesday, Zacks reports.

A number of other research analysts also recently commented on the company. Wall Street Zen downgraded Borr Drilling from a "sell" rating to a "strong sell" rating in a report on Saturday, August 8th. Capital One Financial set a $6.00 target price on Borr Drilling and gave the stock an "overweight" rating in a research note on Wednesday, July 1st. SEB Equity Research set a $3.55 price target on Borr Drilling in a report on Monday, August 17th. Finally, Weiss Ratings cut shares of Borr Drilling from a "sell (d+)" rating to a "sell (d)" rating in a report on Wednesday, August 12th. Two research analysts have rated the stock with a Strong Buy rating, one has issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, Borr Drilling has a consensus rating of "Hold" and an average price target of $5.27.

Borr Drilling Trading Down 2.9%

Shares of BORR stock opened at $4.23 on Tuesday. Borr Drilling has a 1-year low of $2.44 and a 1-year high of $6.66. The firm has a market cap of $1.34 billion, a PE ratio of -5.43 and a beta of 1.03. The company has a 50-day moving average of $4.28 and a two-hundred day moving average of $4.96. The company has a debt-to-equity ratio of 2.58, a current ratio of 2.53 and a quick ratio of 2.53.

Borr Drilling (NYSE:BORR - Get Free Report) last released its quarterly earnings results on Wednesday, August 12th. The company reported ($0.79) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.21) by ($0.58). The company had revenue of $232.30 million during the quarter, compared to analysts' expectations of $245.96 million. Borr Drilling had a negative net margin of 23.98% and a negative return on equity of 5.95%. On average, analysts predict that Borr Drilling will post -0.48 EPS for the current year.

Insider Buying and Selling at Borr Drilling

In other news, Director Jeffrey Currie bought 125,000 shares of Borr Drilling stock in a transaction dated Thursday, August 13th. The stock was acquired at an average cost of $4.01 per share, with a total value of $501,250.00. Following the acquisition, the director owned 479,423 shares of the company's stock, valued at approximately $1,922,486.23. This trade represents a 35.27% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 7.90% of the company's stock.

Institutional Investors Weigh In On Borr Drilling

A number of institutional investors and hedge funds have recently added to or reduced their stakes in BORR. Squarepoint Ops LLC increased its holdings in shares of Borr Drilling by 129.8% in the 2nd quarter. Squarepoint Ops LLC now owns 1,397,369 shares of the company's stock valued at $5,771,000 after acquiring an additional 789,214 shares during the period. AXQ Capital LP raised its holdings in shares of Borr Drilling by 2.6% in the second quarter. AXQ Capital LP now owns 124,639 shares of the company's stock valued at $515,000 after buying an additional 3,180 shares during the last quarter. BTG Pactual Asset Management US LLC acquired a new stake in shares of Borr Drilling during the second quarter worth about $1,536,000. Great Lakes Advisors LLC purchased a new position in shares of Borr Drilling during the second quarter worth about $85,000. Finally, Empowered Funds LLC grew its holdings in shares of Borr Drilling by 115.2% during the first quarter. Empowered Funds LLC now owns 1,422,598 shares of the company's stock worth $8,208,000 after buying an additional 761,433 shares during the last quarter. Hedge funds and other institutional investors own 83.12% of the company's stock.

Trending Headlines about Borr Drilling

Here are the key news stories impacting Borr Drilling this week:

• Positive Sentiment: Borr Drilling agreed to sell its 51% stake in Perforaciones Estratégicas e Integrales Mexicana (Perfomex) to its Mexican partner while retaining ownership of three jackup rigs. The transaction streamlines the company’s Mexico operations, reduces joint-venture complexity and may improve capital allocation, although financial terms were not disclosed. Borr Drilling to sell 51% stake in Perfomex to Mexican partner
• Positive Sentiment: The company announced new contract commitments and an operational update for the Odin jackup rig. Additional contracted work could support utilization, revenue visibility and backlog, though the available report does not provide contract values or durations. Borr Drilling Limited - Operational and Contracting Updates
• Positive Sentiment: An investment analysis maintains a Buy rating, arguing that Borr is a focused operator of modern jackups positioned to benefit from a longer-term recovery in offshore drilling demand. The article also highlights recent debt refinancing on improved terms, which could extend the company’s financial runway. Borr Drilling: Jackup Market Recovery Pure Play With Substantial Upside
• Neutral Sentiment: Borr Drilling published an investor presentation for the Pareto Securities Energy Conference. The presentation may provide updated strategic and market commentary, but no specific new financial guidance was identified in the announcement. Borr Drilling Limited - Investor Presentation
• Negative Sentiment: The anticipated jackup-market recovery has been delayed by escalating Middle East conflict, leaving timing for stronger rig demand uncertain. Borr also continues to face execution and leverage risks while operating with negative earnings. Borr Drilling divests Mexico joint venture stake

About Borr Drilling

Borr Drilling Limited is an offshore drilling contractor that provides drilling services to oil and gas companies. Its principal business is the operation of a fleet of modern jack-up drilling rigs, which are designed to operate in shallow-water environments and support exploration, development and production drilling programs.

The company offers rig contracting and related offshore drilling services, including equipment, crews and operational support. Its jack-up rigs are used for projects in established and emerging offshore energy markets, with operations serving customers across regions such as the North Sea, the Middle East, Southeast Asia, West Africa and the Americas, depending on contract activity.

Borr Drilling was established in 2016 and expanded through the acquisition and integration of jack-up drilling assets from other industry participants.

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