Drilling Tools International Corp. (NASDAQ:DTI) Sees Significant Drop in Short Interest

Key Points

• Drilling Tools International Corp. (NASDAQ:DTI) experienced a 19.4% decline in short interest from July to August, with current short interest totaling 150,900 shares.
• The company reported a quarterly loss of ($0.02) earnings per share, missing analysts' estimates of $0.04, and had revenue of $39.42 million, which was below the consensus estimate.
• A share repurchase plan was authorized by the Board of Directors, allowing the company to buy back up to $10 million, which typically signals that the board believes the stock is undervalued.

Drilling Tools International Corp. (NASDAQ:DTI - Get Free Report) was the target of a significant drop in short interest during the month of August. As of August 15th, there was short interest totaling 150,900 shares, adropof19.4% from the July 31st total of 187,300 shares. Based on an average daily volume of 77,200 shares, the days-to-cover ratio is presently 2.0 days. Currently,1.1% of the shares of the stock are sold short. Currently,1.1% of the shares of the stock are sold short. Based on an average daily volume of 77,200 shares, the days-to-cover ratio is presently 2.0 days.

Drilling Tools International Stock Performance

Shares of DTI opened at $1.96 on Tuesday. Drilling Tools International has a 1-year low of $1.43 and a 1-year high of $4.21. The company has a 50-day moving average of $2.20 and a 200 day moving average of $2.45. The firm has a market capitalization of $69.89 million, a price-to-earnings ratio of -15.08, a PEG ratio of 21.78 and a beta of -0.42. The company has a debt-to-equity ratio of 0.41, a current ratio of 2.06 and a quick ratio of 1.49.

Drilling Tools International (NASDAQ:DTI - Get Free Report) last announced its quarterly earnings data on Wednesday, August 13th. The company reported ($0.02) earnings per share for the quarter, missing analysts' consensus estimates of $0.04 by ($0.06). Drilling Tools International had a negative net margin of 2.81% and a positive return on equity of 4.29%. The company had revenue of $39.42 million for the quarter, compared to the consensus estimate of $40.14 million. Drilling Tools International has set its FY 2025 guidance at EPS. On average, research analysts expect that Drilling Tools International will post 0.38 EPS for the current year.

Drilling Tools International announced that its Board of Directors has authorized a share repurchase plan on Tuesday, May 13th that authorizes the company to buyback $10.00 million in shares. This buyback authorization authorizes the company to reacquire up to 10.2% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board of directors believes its stock is undervalued.

Institutional Investors Weigh In On Drilling Tools International

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP bought a new stake in Drilling Tools International during the 4th quarter valued at about $43,000. XTX Topco Ltd purchased a new position in Drilling Tools International during the 1st quarter valued at about $32,000. BNP Paribas Financial Markets purchased a new position in Drilling Tools International during the 4th quarter valued at about $46,000. Wellington Management Group LLP purchased a new position in Drilling Tools International during the 4th quarter valued at about $52,000. Finally, Nuveen LLC purchased a new position in Drilling Tools International during the 1st quarter valued at about $40,000. Institutional investors own 2.79% of the company's stock.

Wall Street Analysts Forecast Growth

DTI has been the subject of several analyst reports. Wall Street Zen upgraded shares of Drilling Tools International from a "sell" rating to a "hold" rating in a report on Thursday, May 22nd. Zacks Research lowered shares of Drilling Tools International from a "hold" rating to a "strong sell" rating in a report on Friday, August 15th. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $5.50.

About Drilling Tools International

Drilling Tools International Corporation provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole tool rentals, machining, and inspection services to support the global drilling and wellbore construction industry. The company also provides products are bottom hole assembly components, such as stabilizers, subs, non-magnetic and steel drill collars, hole openers, and roller reamers, as well as drill pipe and drill pipe accessories; ancillary equipment and handling tools to support its rental platform, including float valves, ring gauges, tool baskets, lift bail, lift subs, mud magnets, elevators, bracket and bail assemblies, slips, tongs, stabbing guides and safety clamps; and blowout preventers, and pressure control accessory equipment.

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