Moerus Capital Management LLC Sells 143,912 Shares of Valaris Limited $VAL

Key Points

• Moerus Capital Management cut its Valaris stake by 23.7% in the first quarter, selling 143,912 shares. After the sale, it still held 463,985 shares, making Valaris its largest position.
• Institutional ownership of Valaris remains very high at 96.74%, with several large funds recently adjusting their positions. Notable buyers included Schf GPE LLC and Norges Bank.
• Analysts remain cautious on the stock: Susquehanna lowered its price target to $75, and the consensus rating is “Reduce” with an average target of $60.31. Valaris last traded at $79.29 and reported quarterly EPS that missed expectations, though revenue came in above estimates.

Moerus Capital Management LLC reduced its position in Valaris Limited (NYSE:VAL - Free Report) by 23.7% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 463,985 shares of the company's stock after selling 143,912 shares during the period. Valaris makes up approximately 16.8% of Moerus Capital Management LLC's holdings, making the stock its largest holding. Moerus Capital Management LLC owned approximately 0.67% of Valaris worth $45,489,000 at the end of the most recent quarter.

A number of other institutional investors have also modified their holdings of the company. Schf GPE LLC purchased a new stake in Valaris during the 2nd quarter worth $77,675,000. Norges Bank purchased a new position in Valaris in the fourth quarter valued at about $23,581,000. Ameriprise Financial Inc. raised its position in Valaris by 212.8% in the third quarter. Ameriprise Financial Inc. now owns 470,076 shares of the company's stock valued at $22,926,000 after purchasing an additional 319,780 shares during the period. Goehring & Rozencwajg Associates LLC lifted its stake in shares of Valaris by 24.2% during the first quarter. Goehring & Rozencwajg Associates LLC now owns 1,319,351 shares of the company's stock worth $129,349,000 after purchasing an additional 257,281 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in shares of Valaris by 6.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 3,234,713 shares of the company's stock worth $163,031,000 after purchasing an additional 206,305 shares in the last quarter. Hedge funds and other institutional investors own 96.74% of the company's stock.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. Susquehanna lowered their price objective on shares of Valaris from $98.00 to $75.00 and set a "neutral" rating for the company in a research report on Wednesday, July 8th. Weiss Ratings cut shares of Valaris from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, May 6th. Nine research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average price target of $60.31.

Valaris Price Performance

Shares of NYSE VAL opened at $79.29 on Friday. The company has a quick ratio of 1.55, a current ratio of 1.55 and a debt-to-equity ratio of 0.34. Valaris Limited has a fifty-two week low of $43.53 and a fifty-two week high of $114.12. The business has a 50 day moving average price of $85.40 and a two-hundred day moving average price of $84.47. The firm has a market cap of $5.49 billion, a PE ratio of 5.55 and a beta of 0.93.

Valaris (NYSE:VAL - Get Free Report) last released its earnings results on Monday, May 4th. The company reported ($0.24) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.19). Valaris had a net margin of 45.37% and a return on equity of 12.31%. The business had revenue of $465.40 million for the quarter, compared to analysts' expectations of $443.75 million. During the same quarter last year, the company posted ($0.53) earnings per share. The business's quarterly revenue was down 25.0% compared to the same quarter last year. Sell-side analysts expect that Valaris Limited will post 3.18 earnings per share for the current fiscal year.

Valaris Company Profile

Valaris PLC is a leading provider of offshore drilling services to the global energy industry. The company operates a diverse fleet of mobile offshore drilling units, including drillships, semisubmersibles and jackup rigs, designed to support exploration and production activities in deepwater, ultra-deepwater and harsh‐environment settings. Valaris serves a wide range of international oil and gas customers, offering turnkey drilling solutions, project management and advanced technology integration to enhance operational efficiency and safety.

Headquartered in Houston, Texas, Valaris maintains a significant presence in key offshore basins around the world.

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