Precision Drilling Corporation (NYSE:PDS) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Precision Drilling has a “Moderate Buy” consensus from eight analysts, with four buy ratings, one strong buy, one hold, and two sell ratings. The average 12-month price target is $122.33, above the reported share price of $90.07.
• Analyst sentiment has recently weakened, with Weiss Ratings and Zacks Research downgrading the stock to sell and strong sell, respectively, while Wall Street Zen cut its rating to hold.
• Institutional investors and hedge funds own 48.86% of the company, with Bank of America increasing its stake by 129.5%. Precision Drilling’s latest quarterly results missed earnings expectations, reporting a loss of $0.38 per share despite revenue exceeding forecasts.

Shares of Precision Drilling Corporation (NYSE:PDS - Get Free Report) TSE: PD have received a consensus rating of "Moderate Buy" from the eight research firms that are presently covering the firm, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell rating, one has issued a hold rating, four have given a buy rating and one has given a strong buy rating to the company. The average 1 year price objective among brokers that have covered the stock in the last year is $122.3333.

PDS has been the subject of a number of recent analyst reports. Weiss Ratings cut shares of Precision Drilling from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, June 23rd. Zacks Research lowered shares of Precision Drilling from a "hold" rating to a "strong sell" rating in a research note on Wednesday, July 1st. Wall Street Zen cut shares of Precision Drilling from a "buy" rating to a "hold" rating in a report on Sunday, August 9th. TD Securities reiterated a "hold" rating on shares of Precision Drilling in a research note on Friday, May 1st. Finally, Canadian Imperial Bank of Commerce reissued an "outperform" rating on shares of Precision Drilling in a report on Friday, May 1st.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. TD Waterhouse Canada Inc. lifted its holdings in shares of Precision Drilling by 21.2% during the second quarter. TD Waterhouse Canada Inc. now owns 12,341 shares of the oil and gas company's stock worth $929,000 after purchasing an additional 2,155 shares during the period. Public Employees Retirement System of Ohio acquired a new position in Precision Drilling in the 2nd quarter worth approximately $557,000. Plato Investment Management Ltd acquired a new position in Precision Drilling in the 2nd quarter worth approximately $190,000. Bank of America Corp DE increased its holdings in Precision Drilling by 129.5% in the 1st quarter. Bank of America Corp DE now owns 114,706 shares of the oil and gas company's stock worth $11,287,000 after buying an additional 64,735 shares during the period. Finally, Amundi raised its position in Precision Drilling by 6.9% during the 1st quarter. Amundi now owns 3,095 shares of the oil and gas company's stock worth $305,000 after buying an additional 201 shares during the last quarter. 48.86% of the stock is owned by institutional investors and hedge funds.

Precision Drilling Trading Down 0.3%

NYSE:PDS opened at $90.07 on Friday. The company has a quick ratio of 1.29, a current ratio of 1.46 and a debt-to-equity ratio of 0.39. The stock has a market capitalization of $1.16 billion, a price-to-earnings ratio of -43.10 and a beta of 0.78. The firm has a 50 day moving average of $81.69 and a 200 day moving average of $88.63. Precision Drilling has a 52 week low of $53.42 and a 52 week high of $103.80.

Precision Drilling (NYSE:PDS - Get Free Report) TSE: PD last issued its quarterly earnings results on Tuesday, July 28th. The oil and gas company reported ($0.38) earnings per share for the quarter, missing analysts' consensus estimates of $0.43 by ($0.81). Precision Drilling had a positive return on equity of 2.11% and a negative net margin of 1.68%.The business had revenue of $319.15 million for the quarter, compared to analysts' expectations of $310.70 million. As a group, sell-side analysts anticipate that Precision Drilling will post 4.53 earnings per share for the current fiscal year.

Precision Drilling Company Profile

Precision Drilling Corporation NYSE: PDS is a Calgary, Alberta–based oilfield services company that has provided drilling solutions since its founding in 1951. With more than seven decades of industry experience, the company delivers contract drilling services, directional and horizontal drilling, well servicing, and a suite of specialized equipment designed to meet the evolving needs of exploration and production companies worldwide.

The company's core business activities include operating a fleet of onshore drilling rigs, offering managed pressure drilling, measurement-while-drilling (MWD) and logging-while-drilling (LWD) services, and providing completion and workover rigs.

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