Drilling Tools International Corp. (NASDAQ:DTI) Sees Large Decline 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 large drop in short interest during the month of August. As of August 15th, there was short interest totaling 150,900 shares, a drop of 19.4% from the July 31st total of 187,300 shares. Based on an average trading volume of 77,200 shares, the days-to-cover ratio is presently 2.0 days. Approximately 1.1% of the company's shares are sold short. Approximately 1.1% of the company's shares are sold short. Based on an average trading volume of 77,200 shares, the days-to-cover ratio is presently 2.0 days.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on DTI. Zacks Research lowered shares of Drilling Tools International from a "hold" rating to a "strong sell" rating in a research note on Friday, August 15th. Wall Street Zen raised shares of Drilling Tools International from a "sell" rating to a "hold" rating in a research note on Thursday, May 22nd. One investment analyst has rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Drilling Tools International presently has a consensus rating of "Hold" and an average target price of $5.50.

Hedge Funds Weigh In On Drilling Tools International

A number of institutional investors have recently added to or reduced their stakes in DTI. XTX Topco Ltd acquired a new position in Drilling Tools International during the first quarter worth $32,000. Nuveen LLC acquired a new position in Drilling Tools International during the first quarter worth $40,000. Dimensional Fund Advisors LP bought a new position in Drilling Tools International during the fourth quarter worth $43,000. BNP Paribas Financial Markets acquired a new position in shares of Drilling Tools International in the fourth quarter valued at $46,000. Finally, Qube Research & Technologies Ltd acquired a new position in shares of Drilling Tools International in the second quarter valued at $49,000. 2.79% of the stock is currently owned by institutional investors and hedge funds.

Drilling Tools International Stock Up 12.1%

Shares of NASDAQ DTI traded up $0.24 during midday trading on Friday, reaching $2.22. The company's stock had a trading volume of 57,559 shares, compared to its average volume of 50,455. The company has a current ratio of 2.06, a quick ratio of 1.49 and a debt-to-equity ratio of 0.41. Drilling Tools International has a fifty-two week low of $1.43 and a fifty-two week high of $4.21. The stock has a market capitalization of $79.17 million, a price-to-earnings ratio of -17.08, a PEG ratio of 24.67 and a beta of -0.42. The stock has a 50 day simple moving average of $2.13 and a 200-day simple moving average of $2.42.

Drilling Tools International (NASDAQ:DTI - Get Free Report) last issued its earnings results 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). The firm had revenue of $39.42 million for the quarter, compared to analyst estimates of $40.14 million. Drilling Tools International had a positive return on equity of 4.29% and a negative net margin of 2.81%. Drilling Tools International has set its FY 2025 guidance at EPS. Equities research analysts predict that Drilling Tools International will post 0.38 earnings per share for the current year.

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.