Borr Drilling (NYSE:BORR) Shares Gap Down Following Weak Earnings

Key Points

• Borr Drilling shares fell sharply, opening at $3.91 versus a prior close of $4.26 and last trading near $3.84 after the company reported weaker-than-expected results.
• Quarterly EPS was a loss of $0.79, missing the $0.21-loss consensus by $0.58, while revenue of $232.3 million also fell short of the $246.0 million estimate.
• Analyst sentiment remains mixed but averages to a “Moderate Buy” with a $4.88 target price; separately, a director sold 8 million shares worth $37.6 million, reducing his ownership by 17.32%.

Borr Drilling Limited (NYSE:BORR - Get Free Report) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $4.26, but opened at $3.91. Borr Drilling shares last traded at $3.8350, with a volume of 2,547,057 shares changing hands.

The company reported ($0.79) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.21) by ($0.58). Borr Drilling had a return on equity of 2.88% and a net margin of 3.13%.The business had revenue of $232.30 million during the quarter, compared to the consensus estimate of $245.96 million.

Analysts Set New Price Targets

BORR has been the topic of several recent research reports. Fearnley Fonds upgraded Borr Drilling from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, April 21st. Zacks Research raised Borr Drilling to a "hold" rating in a research note on Thursday, July 2nd. Weiss Ratings restated a "sell (d+)" rating on shares of Borr Drilling in a report on Wednesday, June 24th. Wall Street Zen lowered Borr Drilling from a "sell" rating to a "strong sell" rating in a research report on Saturday. Finally, Capital One Financial set a $6.00 price target on shares of Borr Drilling and gave the stock an "overweight" rating in a research note on Wednesday, July 1st. Two research analysts have rated the stock with a Strong Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $4.88.

Insider Activity at Borr Drilling

In other news, Director Thiago Mordehachvili sold 8,000,000 shares of the business's stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $4.70, for a total value of $37,600,000.00. Following the completion of the transaction, the director owned 38,199,677 shares in the company, valued at $179,538,481.90. The trade was a 17.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 7.90% of the company's stock.

Institutional Investors Weigh In On Borr Drilling

Large investors have recently bought and sold shares of the business. Optiver Holding B.V. boosted its holdings in shares of Borr Drilling by 186.4% during the 1st quarter. Optiver Holding B.V. now owns 5,060 shares of the company's stock valued at $29,000 after acquiring an additional 3,293 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its holdings in shares of Borr Drilling by 2,435.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 8,467 shares of the company's stock valued at $34,000 after purchasing an additional 8,133 shares during the last quarter. Abel Hall LLC purchased a new stake in Borr Drilling in the third quarter worth approximately $43,000. Oxford Asset Management LLP bought a new stake in Borr Drilling in the 2nd quarter worth approximately $43,000. Finally, Inspire Advisors LLC bought a new position in shares of Borr Drilling during the 4th quarter valued at $44,000. 83.12% of the stock is currently owned by institutional investors.

Borr Drilling Stock Performance

The company has a market cap of $1.21 billion, a PE ratio of 25.50 and a beta of 1.02. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.63 and a quick ratio of 1.63. The business has a 50-day moving average of $4.31 and a 200 day moving average of $5.12.

Borr Drilling Company Profile

Borr Drilling is an international offshore drilling contractor providing premium jack-up drilling services to the oil and gas industry. Established in 2016 and incorporated in Bermuda with headquarters in Hamilton, the company is listed on the New York Stock Exchange under the ticker symbol BORR. Borr Drilling focuses exclusively on the ownership and operation of mobile offshore jack-up rigs, catering to exploration and production drilling projects in both mature and emerging hydrocarbon regions.

The company's core business activities encompass the long-term contracting of high-specification jack-up rigs suitable for shallow-to-intermediate water depths.

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