Tensile Capital Management LP Acquires New Stake in Valaris Limited $VAL

Key Points

• Tensile Capital Management LP acquired 660,000 shares of Valaris Limited (NYSE: VAL) valued at approximately $25.9 million, making it the fund's 12th largest holding.
• Analysts have various ratings for Valaris, with a consensus rating of "Hold" and an average target price of $47.21, following recent upgrades and downgrades from firms such as Susquehanna and Barclays.
• Valaris reported an EPS of $1.61 for the last quarter, surpassing analyst expectations and achieving a revenue of $615.20 million, marking a 0.8% year-over-year increase.

Tensile Capital Management LP purchased a new position in shares of Valaris Limited (NYSE:VAL - Free Report) in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 660,000 shares of the company's stock, valued at approximately $25,912,000. Valaris accounts for 3.3% of Tensile Capital Management LP's investment portfolio, making the stock its 12th largest holding. Tensile Capital Management LP owned 0.93% of Valaris as of its most recent SEC filing.

A number of other large investors also recently bought and sold shares of VAL. Dimensional Fund Advisors LP raised its stake in shares of Valaris by 20.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,761,369 shares of the company's stock worth $108,412,000 after buying an additional 460,792 shares in the last quarter. Dalal Street LLC purchased a new position in Valaris in the first quarter worth $56,046,000. Waverton Investment Management Ltd boosted its holdings in Valaris by 49.7% during the first quarter. Waverton Investment Management Ltd now owns 1,131,601 shares of the company's stock worth $44,455,000 after buying an additional 375,466 shares in the last quarter. Northern Trust Corp grew its holdings in shares of Valaris by 12.1% in the 4th quarter. Northern Trust Corp now owns 818,461 shares of the company's stock worth $36,209,000 after acquiring an additional 88,160 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its stake in shares of Valaris by 2.6% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 813,871 shares of the company's stock worth $31,953,000 after buying an additional 20,278 shares during the last quarter. Hedge funds and other institutional investors own 96.74% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Barclays raised their target price on shares of Valaris from $37.00 to $39.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 10th. Citigroup restated a "neutral" rating and issued a $50.00 target price (up from $47.00) on shares of Valaris in a report on Thursday, July 10th. Zacks Research raised Valaris from a "strong sell" rating to a "hold" rating in a research note on Friday, September 5th. Fearnley Fonds lowered Valaris from a "strong-buy" rating to a "hold" rating in a report on Wednesday, July 30th. Finally, Wall Street Zen raised shares of Valaris from a "sell" rating to a "hold" rating in a research note on Saturday, August 30th. One investment analyst has rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $47.21.

Valaris Price Performance

NYSE:VAL traded up $1.35 during mid-day trading on Wednesday, hitting $52.54. 1,180,113 shares of the stock traded hands, compared to its average volume of 1,706,920. The business's 50-day moving average price is $48.09 and its 200 day moving average price is $41.26. The company has a market cap of $3.74 billion, a PE ratio of 13.68 and a beta of 1.17. Valaris Limited has a 12-month low of $27.15 and a 12-month high of $57.90. The company has a quick ratio of 1.81, a current ratio of 1.81 and a debt-to-equity ratio of 0.46.

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

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.