Moerus Capital Management LLC Takes Position in Valaris Limited (NYSE:VAL)

Key Points

• Moerus Capital Management LLC acquired 466,479 shares of Valaris Limited, worth approximately $18.31 million, representing 8.2% of its portfolio and making Valaris its 6th largest holding.
• Several institutional investors, including LPL Financial LLC and Envestnet Asset Management Inc., significantly increased their stakes in Valaris during the fourth quarter of last year.
• Valaris reported a quarterly EPS of $1.61, surpassing the consensus estimate of $1.16, with revenue reaching $615.20 million against expectations of $582.70 million.

Moerus Capital Management LLC bought a new position in Valaris Limited (NYSE:VAL - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 466,479 shares of the company's stock, valued at approximately $18,314,000. Valaris comprises approximately 8.2% of Moerus Capital Management LLC's portfolio, making the stock its 6th largest position. Moerus Capital Management LLC owned about 0.66% of Valaris at the end of the most recent quarter.

Other large investors have also recently bought and sold shares of the company. Lowe Wealth Advisors LLC bought a new stake in Valaris during the first quarter worth approximately $28,000. Quarry LP raised its holdings in Valaris by 51.7% during the fourth quarter. Quarry LP now owns 684 shares of the company's stock worth $30,000 after purchasing an additional 233 shares in the last quarter. Sterling Capital Management LLC raised its holdings in Valaris by 518.3% during the fourth quarter. Sterling Capital Management LLC now owns 742 shares of the company's stock worth $33,000 after purchasing an additional 622 shares in the last quarter. UMB Bank n.a. bought a new stake in Valaris during the first quarter worth approximately $44,000. Finally, GAMMA Investing LLC raised its holdings in Valaris by 1,027.5% during the first quarter. GAMMA Investing LLC now owns 1,353 shares of the company's stock worth $53,000 after purchasing an additional 1,233 shares in the last quarter. Institutional investors own 96.74% of the company's stock.

Valaris Trading Down 3.0%

NYSE VAL traded down $1.40 on Friday, hitting $45.23. 1,264,787 shares of the stock were exchanged, compared to its average volume of 1,352,408. Valaris Limited has a 52-week low of $27.15 and a 52-week high of $65.68. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.81 and a quick ratio of 1.81. The company has a market capitalization of $3.22 billion, a price-to-earnings ratio of 11.78 and a beta of 1.17. The company's 50-day moving average price is $46.59 and its two-hundred day moving average price is $40.93.

Valaris (NYSE:VAL - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $1.61 earnings per share for the quarter, topping the consensus estimate of $1.16 by $0.45. Valaris had a net margin of 11.18% and a return on equity of 12.36%. The firm had revenue of $615.20 million for the quarter, compared to analysts' expectations of $582.70 million. During the same period in the previous year, the company posted $2.03 EPS. The company's quarterly revenue was up .8% compared to the same quarter last year. Research analysts predict that Valaris Limited will post 3.96 EPS for the current year.

Analyst Ratings Changes

Several brokerages recently commented on VAL. Wall Street Zen raised Valaris to a "sell" rating in a report on Tuesday, May 13th. Citigroup reissued a "neutral" rating and set a $50.00 target price (up previously from $47.00) on shares of Valaris in a report on Thursday, July 10th. Susquehanna boosted their target price on Valaris from $46.00 to $52.00 and gave the stock a "neutral" rating in a report on Friday, August 1st. Barclays boosted their target price on Valaris from $37.00 to $39.00 and gave the stock an "equal weight" rating in a report on Thursday, July 10th. Finally, BTIG Research reaffirmed a "buy" rating on shares of Valaris in a report on Monday, July 14th. Two equities 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, Valaris currently has a consensus rating of "Hold" and a consensus price target of $46.20.

About Valaris

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.