Valaris (NYSE:VAL) Cut to "Hold" at Fearnley Fonds

Key Points

• Fearnley Fonds has downgraded Valaris (NYSE:VAL) from a "strong-buy" to a "hold" rating, reflecting a shift in analyst sentiment.
• Valaris reported $1.61 earnings per share (EPS), surpassing expectations by $0.45, with revenues of $615.20 million for the quarter.
• Analysts have varied ratings on Valaris, with two giving a sell rating, six a hold rating, and one a buy rating, resulting in a consensus "Hold" rating and an average target price of $53.50.

Fearnley Fonds downgraded shares of Valaris (NYSE:VAL - Free Report) from a strong-buy rating to a hold rating in a research report report published on Wednesday, July 30th,Zacks.com reports.

A number of other research firms have also commented on VAL. Barclays lifted their price objective on shares of Valaris from $37.00 to $39.00 and gave the company an "equal weight" rating in a research note on Thursday, July 10th. Citigroup reiterated a "neutral" rating and set a $50.00 price target (up from $47.00) on shares of Valaris in a research note on Thursday, July 10th. Evercore ISI lowered their price objective on Valaris from $55.00 to $50.00 and set an "in-line" rating on the stock in a report on Friday, May 2nd. Susquehanna increased their target price on Valaris from $46.00 to $52.00 and gave the stock a "neutral" rating in a research note on Friday, August 1st. Finally, BTIG Research reaffirmed a "buy" rating on shares of Valaris in a report on Monday, July 14th. Two research analysts have rated the stock with a sell rating, six have given a hold rating and one has given a buy rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $46.20.

Valaris Trading Up 0.9%

Valaris stock traded up $0.42 during midday trading on Wednesday, hitting $48.19. 1,354,671 shares of the stock were exchanged, compared to its average volume of 1,796,842. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 0.46. The stock's 50-day simple moving average is $45.42 and its 200 day simple moving average is $41.02. Valaris has a fifty-two week low of $27.15 and a fifty-two week high of $66.83. The stock has a market capitalization of $3.43 billion, a price-to-earnings ratio of 12.55 and a beta of 1.17.

Valaris (NYSE:VAL - Get Free Report) last announced its earnings results on Wednesday, July 30th. The company reported $1.61 EPS for the quarter, beating analysts' consensus estimates of $1.16 by $0.45. The company had revenue of $615.20 million during the quarter, compared to analysts' expectations of $582.70 million. Valaris had a return on equity of 12.36% and a net margin of 11.18%. Valaris's revenue for the quarter was up .8% on a year-over-year basis. During the same period last year, the business posted $2.03 EPS. On average, equities analysts anticipate that Valaris will post 3.96 EPS for the current year.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Lowe Wealth Advisors LLC acquired a new stake in shares of Valaris in the first quarter worth $28,000. Blume Capital Management Inc. increased its stake in Valaris by 56.5% during the second quarter. Blume Capital Management Inc. now owns 665 shares of the company's stock valued at $28,000 after acquiring an additional 240 shares during the period. Quarry LP raised its holdings in Valaris by 51.7% in the 4th quarter. Quarry LP now owns 684 shares of the company's stock valued at $30,000 after acquiring an additional 233 shares in the last quarter. Sterling Capital Management LLC lifted its position in shares of Valaris by 518.3% in the 4th quarter. Sterling Capital Management LLC now owns 742 shares of the company's stock worth $33,000 after acquiring an additional 622 shares during the period. Finally, Fifth Third Bancorp lifted its position in shares of Valaris by 77.9% in the 2nd quarter. Fifth Third Bancorp now owns 822 shares of the company's stock worth $35,000 after acquiring an additional 360 shares during the period. Institutional investors and hedge funds own 96.74% of the company's stock.

Valaris Company Profile

Valaris Limited, together with its subsidiaries, provides offshore contract drilling services Gulf of Mexico, South America, North Sea, the Middle East, Africa, and the Asia Pacific. The company operates through four segments: Floaters, Jackups, ARO, and Other. It owns an offshore drilling rig fleet, which include drillships, dynamically positioned semisubmersible rigs, moored semisubmersible rig, and jackup rigs.