Mountain Lake Investment Management LLC Trims Stock Holdings in Seadrill Limited $SDRL

Key Points

• Mountain Lake Investment Management LLC cut its stake in Seadrill by 39.6% in Q3 to 145,436 shares (about $4.39M), making SDRL roughly 3.3% of the fund and its 12th-largest holding.
• Analyst views are mixed — several firms raised targets (BTIG, Barclays, Citi) while Weiss downgraded to sell; MarketBeat's consensus rating is Hold with an average price target of $48.
• Seadrill topped quarterly estimates with EPS of $0.12 (vs. $0.07) and revenue of $362M (vs. $335M) but still posts a negative net margin (-5.36%) and ROE (-2.07%), and its shares trade around $43.24 (market cap ≈ $2.7B).

Mountain Lake Investment Management LLC lowered its stake in shares of Seadrill Limited (NYSE:SDRL - Free Report) by 39.6% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 145,436 shares of the oil and gas company's stock after selling 95,524 shares during the period. Seadrill accounts for approximately 3.3% of Mountain Lake Investment Management LLC's portfolio, making the stock its 12th biggest holding. Mountain Lake Investment Management LLC owned 0.23% of Seadrill worth $4,394,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Raymond James Financial Inc. acquired a new position in Seadrill in the 2nd quarter valued at about $27,000. Aquatic Capital Management LLC acquired a new stake in shares of Seadrill during the 3rd quarter worth about $44,000. EverSource Wealth Advisors LLC purchased a new stake in shares of Seadrill during the second quarter worth about $42,000. Farther Finance Advisors LLC grew its holdings in shares of Seadrill by 19.7% during the third quarter. Farther Finance Advisors LLC now owns 2,086 shares of the oil and gas company's stock worth $63,000 after buying an additional 343 shares in the last quarter. Finally, State of Alaska Department of Revenue acquired a new position in shares of Seadrill in the third quarter valued at approximately $68,000. Hedge funds and other institutional investors own 95.67% of the company's stock.

Analysts Set New Price Targets

Several equities analysts recently issued reports on SDRL shares. BWS Financial reissued a "buy" rating and set a $80.00 price objective on shares of Seadrill in a research note on Friday, January 23rd. Barclays lifted their target price on shares of Seadrill from $39.00 to $41.00 and gave the stock an "equal weight" rating in a research note on Monday, March 2nd. BTIG Research increased their price target on Seadrill from $33.00 to $40.00 and gave the stock a "buy" rating in a research note on Friday, January 9th. Weiss Ratings lowered Seadrill from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, January 6th. Finally, Citigroup upgraded Seadrill from a "sell" rating to a "neutral" rating and raised their price objective for the stock from $32.00 to $46.00 in a report on Thursday, March 5th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $48.00.

Seadrill Trading Up 0.8%

Shares of SDRL stock opened at $43.24 on Tuesday. The firm has a market cap of $2.70 billion, a P/E ratio of -34.87 and a beta of 1.45. Seadrill Limited has a 1-year low of $17.74 and a 1-year high of $45.90. The company has a debt-to-equity ratio of 0.21, a current ratio of 2.03 and a quick ratio of 2.03. The firm's 50-day simple moving average is $40.08 and its 200-day simple moving average is $34.54.

Seadrill (NYSE:SDRL - Get Free Report) last released its earnings results on Wednesday, February 25th. The oil and gas company reported $0.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.07 by $0.05. Seadrill had a negative net margin of 5.36% and a negative return on equity of 2.07%. The business had revenue of $362.00 million for the quarter, compared to analysts' expectations of $335.36 million. As a group, equities analysts forecast that Seadrill Limited will post 1.86 EPS for the current year.

Seadrill Profile

Seadrill Limited, trading on the New York Stock Exchange under the symbol SDRL, is a leading provider of offshore drilling services to the global oil and gas industry. The company specializes in the design, construction, deployment and operation of mobile offshore drilling units, serving major exploration and production companies with turnkey drilling solutions.

Seadrill’s fleet comprises ultra-deepwater drillships, semi-submersible rigs and high-specification jack-up units capable of operating in some of the world’s most challenging offshore environments.

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