Short Interest in Subsea 7 SA (OTCMKTS:SUBCY) Grows By 365.2%

Key Points

• Short interest surged 365.2% to 9,336 shares as of August 14, up from 2,007 shares on July 30. Despite the increase, short interest represents approximately 0.0% of shares outstanding, with a days-to-cover ratio of 0.3.
• Analyst sentiment remains positive overall, with Subsea 7 holding a consensus “Moderate Buy” rating. Recent actions included a Zacks downgrade to “Hold,” while UBS reiterated “Buy” and Redburn upgraded the stock to “Strong Buy.”
• Subsea 7 exceeded quarterly expectations, reporting $0.85 in EPS versus the $0.64 consensus estimate and revenue of $1.93 billion versus $1.91 billion expected. Shares opened at $36.02, near their 12-month high of $37.66.

Subsea 7 SA (OTCMKTS:SUBCY - Get Free Report) was the target of a significant growth in short interest in August. As of August 14th, there was short interest totaling 9,336 shares, a growth of 365.2% from the July 30th total of 2,007 shares. Based on an average daily trading volume, of 32,743 shares, the days-to-cover ratio is currently 0.3 days. Approximately 0.0% of the company's stock are short sold.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on SUBCY. Zacks Research lowered shares of Subsea 7 from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 14th. UBS Group reiterated a "buy" rating on shares of Subsea 7 in a report on Wednesday, August 5th. Finally, Rothschild & Co Redburn upgraded shares of Subsea 7 from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 23rd. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy".

Subsea 7 Price Performance

Shares of Subsea 7 stock opened at $36.02 on Wednesday. The company has a quick ratio of 1.09, a current ratio of 1.11 and a debt-to-equity ratio of 0.09. The stock has a market capitalization of $10.65 billion, a price-to-earnings ratio of 17.49 and a beta of 1.10. Subsea 7 has a twelve month low of $17.79 and a twelve month high of $37.66. The company has a 50-day simple moving average of $34.57 and a two-hundred day simple moving average of $32.25.

Subsea 7 (OTCMKTS:SUBCY - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The energy company reported $0.85 EPS for the quarter, topping analysts' consensus estimates of $0.64 by $0.21. Subsea 7 had a return on equity of 14.04% and a net margin of 8.15%.The firm had revenue of $1.93 billion for the quarter, compared to analyst estimates of $1.91 billion. Analysts forecast that Subsea 7 will post 2.66 EPS for the current year.

Subsea 7 Company Profile

Subsea 7 SA is a global engineering, construction and services contractor serving the offshore energy industry. The company specializes in complex subsea infrastructure projects, offering pipeline and riser installation, umbilical and flowline deployment, and subsea tie-ins. Its fleet of specialized vessels, diving systems and remotely operated vehicles (ROVs) supports installation, inspection, maintenance and repair activities across the life cycle of offshore oil, gas and renewable energy fields.

With roots tracing back to the merger of Subsea 7 Inc and Acergy SA in 2011, Subsea 7 has built a broad international footprint.

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