Borr Drilling (NYSE:BORR) Trading Up 7.5% - Time to Buy?

Key Points

• Borr Drilling shares rose 7.5% to about $4.15, though trading volume was 57% below the average daily level.
• Analyst views remain mixed, but the stock carries a consensus “Moderate Buy” rating and an average price target of $4.88, above its recent trading price.
• The company missed quarterly expectations, reporting a loss of $0.09 per share versus the $0.02 consensus estimate and revenue of $247 million versus $253.35 million expected. A director also sold 8 million shares at an average price of $4.70.

Shares of Borr Drilling Limited (NYSE:BORR - Get Free Report) shot up 7.5% during mid-day trading on Monday . The stock traded as high as $4.12 and last traded at $4.1480. 3,038,530 shares traded hands during trading, a decline of 57% from the average daily volume of 6,995,550 shares. The stock had previously closed at $3.86.

Analyst Upgrades and Downgrades

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

Borr Drilling Stock Up 7.6%

The stock has a market cap of $1.31 billion, a price-to-earnings ratio of 27.70 and a beta of 1.02. The company has a current ratio of 1.63, a quick ratio of 1.63 and a debt-to-equity ratio of 1.82. The stock's 50-day moving average price is $4.35 and its 200-day moving average price is $5.12.

Borr Drilling (NYSE:BORR - Get Free Report) last posted its quarterly earnings data on Wednesday, May 20th. The company reported ($0.09) EPS for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.07). Borr Drilling had a net margin of 3.13% and a return on equity of 2.88%. The firm had revenue of $247.00 million during the quarter, compared to the consensus estimate of $253.35 million. On average, sell-side analysts expect that Borr Drilling Limited will post -0.13 earnings per share for the current year.

Insiders Place Their Bets

In other Borr Drilling news, Director Thiago Mordehachvili sold 8,000,000 shares of the stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $4.70, for a total transaction of $37,600,000.00. Following the transaction, the director directly owned 38,199,677 shares in the company, valued at approximately $179,538,481.90. This represents a 17.32% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 7.90% of the company's stock.

Institutional Trading of Borr Drilling

Several hedge funds have recently modified their holdings of the stock. Optiver Holding B.V. boosted its stake in Borr Drilling by 186.4% during the first quarter. Optiver Holding B.V. now owns 5,060 shares of the company's stock worth $29,000 after acquiring an additional 3,293 shares in 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 period. Abel Hall LLC acquired a new position in shares of Borr Drilling during the third quarter valued at about $43,000. Oxford Asset Management LLP bought a new position in shares of Borr Drilling during the 2nd quarter worth about $43,000. Finally, Inspire Advisors LLC bought a new position in shares of Borr Drilling during the 4th quarter worth about $44,000. Institutional investors own 83.12% of the company's stock.

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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