Valaris Limited (NYSE:VAL) Receives Average Recommendation of "Reduce" from Analysts

Key Points

• Analysts’ consensus rating is “Reduce”: One analyst recommends selling Valaris, while six rate it as a hold. The average 12-month price target is $66.60, below the stock’s reported opening price of $84.20.
• Valaris exceeded quarterly expectations, reporting $0.72 in EPS versus a $0.31 estimate and revenue of $539.2 million versus $488.5 million expected. However, revenue declined 12.4% year over year.
• Institutional investors own a substantial 96.74% of Valaris shares, while the company’s stock has traded between $46.70 and $114.12 over the past 52 weeks.

Valaris Limited (NYSE:VAL - Get Free Report) has received a consensus recommendation of "Reduce" from the seven brokerages that are covering the firm, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation and six have given a hold recommendation to the company. The average 1 year price target among brokerages that have issued a report on the stock in the last year is $66.60.

Several research firms have weighed in on VAL. Susquehanna increased their target price on Valaris from $75.00 to $80.00 and gave the company a "neutral" rating in a research note on Friday, August 7th. Weiss Ratings upgraded Valaris from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, August 17th.

Valaris Stock Performance

Shares of Valaris stock opened at $84.20 on Friday. The firm has a fifty day moving average of $82.53 and a two-hundred day moving average of $88.57. The stock has a market capitalization of $5.85 billion, a price-to-earnings ratio of 6.29 and a beta of 0.93. Valaris has a 52 week low of $46.70 and a 52 week high of $114.12. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.55 and a current ratio of 1.55.

Valaris (NYSE:VAL - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.31 by $0.41. Valaris had a return on equity of 9.25% and a net margin of 43.95%.The business had revenue of $539.20 million for the quarter, compared to analyst estimates of $488.52 million. During the same period last year, the company earned $1.61 EPS. The firm's revenue was down 12.4% on a year-over-year basis. As a group, equities research analysts predict that Valaris will post 3.25 EPS for the current year.

Institutional Investors Weigh In On Valaris

Several large investors have recently bought and sold shares of VAL. WINTON GROUP Ltd increased its stake in Valaris by 0.5% in the fourth quarter. WINTON GROUP Ltd now owns 27,510 shares of the company's stock valued at $1,387,000 after acquiring an additional 146 shares during the last quarter. PNC Financial Services Group Inc. grew its holdings in shares of Valaris by 0.5% during the first quarter. PNC Financial Services Group Inc. now owns 31,465 shares of the company's stock worth $3,085,000 after purchasing an additional 169 shares during the last quarter. State of Michigan Retirement System lifted its holdings in Valaris by 1.3% during the 1st quarter. State of Michigan Retirement System now owns 15,500 shares of the company's stock worth $1,520,000 after buying an additional 200 shares during the period. Oregon Public Employees Retirement Fund increased its stake in shares of Valaris by 1.8% in the first quarter. Oregon Public Employees Retirement Fund now owns 13,176 shares of the company's stock valued at $1,292,000 after buying an additional 239 shares during the period. Finally, Parallel Advisors LLC raised its holdings in Valaris by 33.5% during the 1st quarter. Parallel Advisors LLC now owns 1,065 shares of the company's stock worth $104,000 after purchasing an additional 267 shares during the last quarter. Institutional investors own 96.74% of the company's stock.

Valaris Company Profile

Valaris Limited NYSE: VAL is an offshore contract drilling company that provides drilling services to energy companies worldwide. The company supports exploration and production activities in offshore oil and natural gas fields, operating mobile offshore drilling units for customers under contract.

Valaris' fleet includes drillships, semisubmersible rigs and jackup rigs. These units are designed for a range of offshore environments, from relatively shallow waters to deepwater and harsh-environment locations.

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