Traders Buy Large Volume of Put Options on Borr Drilling (NYSE:BORR)

Key Points

• Put-option activity surged: Investors purchased 7,756 BORR put options, roughly 294% above the average daily volume of 1,968 contracts, signaling increased bearish or hedging activity.
• Insiders increased their holdings: Director Jeffrey Currie bought 125,000 shares and COO Harvey Snowling purchased 300,000 shares. Insiders collectively own 7.90% of Borr Drilling, while institutional investors and hedge funds own 83.12%.
• Financial performance remains pressured: Shares traded near $4.55, while the company recently missed quarterly earnings and revenue estimates. Analysts give the stock an average “Hold” rating with a $5.27 price target, although ratings range from Strong Buy to Strong Sell.

Borr Drilling Limited (NYSE:BORR - Get Free Report) was the recipient of some unusual options trading activity on Friday. Stock investors purchased 7,756 put options on the company. This is an increase of 294% compared to the average daily volume of 1,968 put options.

Insider Transactions at Borr Drilling

In other news, Director Jeffrey Currie bought 125,000 shares of the stock in a transaction on Thursday, August 13th. The stock was acquired at an average cost of $4.01 per share, for a total transaction of $501,250.00. Following the acquisition, the director owned 479,423 shares of the company's stock, valued at $1,922,486.23. This represents a 35.27% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Harvey Snowling bought 300,000 shares of the company's stock in a transaction on Wednesday, October 14th. The shares were acquired at an average price of $4.91 per share, for a total transaction of $1,473,000.00. Following the completion of the acquisition, the chief operating officer owned 445,944 shares in the company, valued at $2,189,585.04. This represents a 205.56% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 7.90% of the company's stock.

Institutional Investors Weigh In On Borr Drilling

Several hedge funds and other institutional investors have recently bought and sold shares of BORR. Optiver Holding B.V. increased its holdings in shares of Borr Drilling by 186.4% during the 1st quarter. Optiver Holding B.V. now owns 5,060 shares of the company's stock worth $29,000 after buying an additional 3,293 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its stake in shares of Borr Drilling by 2,435.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 8,467 shares of the company's stock valued at $34,000 after acquiring an additional 8,133 shares in the last quarter. Fortitude Family Office LLC raised its position in Borr Drilling by 11,940.8% in the 3rd quarter. Fortitude Family Office LLC now owns 8,549 shares of the company's stock valued at $33,000 after purchasing an additional 8,478 shares in the last quarter. State of Alaska Department of Revenue acquired a new stake in Borr Drilling in the third quarter valued at approximately $41,000. Finally, Cetera Investment Advisers purchased a new stake in shares of Borr Drilling during the 1st quarter worth $66,000. 83.12% of the stock is currently owned by institutional investors and hedge funds.

Borr Drilling Price Performance

Borr Drilling stock traded up $0.01 during midday trading on Friday, reaching $4.55. The company had a trading volume of 5,557,626 shares, compared to its average volume of 7,039,962. The firm's fifty day simple moving average is $4.37 and its 200-day simple moving average is $4.80. Borr Drilling has a 12-month low of $2.53 and a 12-month high of $6.66. The company has a debt-to-equity ratio of 2.58, a current ratio of 2.53 and a quick ratio of 2.53. The company has a market capitalization of $1.44 billion, a P/E ratio of -5.87 and a beta of 1.08.

Borr Drilling (NYSE:BORR - Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The company reported ($0.79) earnings per share for the quarter, missing analysts' consensus estimates of ($0.21) by ($0.58). The firm had revenue of $232.30 million during the quarter, compared to analysts' expectations of $245.96 million. Borr Drilling had a negative net margin of 23.98% and a negative return on equity of 5.95%. As a group, equities analysts anticipate that Borr Drilling will post -0.48 EPS for the current year.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on BORR. Zacks Research cut Borr Drilling from a "hold" rating to a "strong sell" rating in a research report on Tuesday, September 15th. Weiss Ratings upgraded shares of Borr Drilling from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday, October 9th. Wall Street Zen cut Borr Drilling from a "sell" rating to a "strong sell" rating in a research note on Saturday, August 8th. Capital One Financial set a $6.00 price target on shares of Borr Drilling and gave the company an "overweight" rating in a report on Wednesday, July 1st. Finally, SEB Equity Research set a $3.55 price objective on shares of Borr Drilling in a research note on Monday, August 17th. Two investment analysts have rated the stock with a Strong Buy rating, one has given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Borr Drilling presently has an average rating of "Hold" and an average target price of $5.27.

Borr Drilling Company Profile

Borr Drilling Limited NYSE: BORR is an offshore drilling contractor that provides drilling services to oil and gas companies. The company focuses primarily on jack-up rigs, which are mobile offshore drilling units used in relatively shallow waters for exploration, development and production drilling.

Borr Drilling owns and operates a fleet of modern jack-up rigs, including premium and high-specification units designed to work in a range of offshore environments. Its services support customers throughout the drilling life cycle, from exploratory wells to development and production activities.

Established in 2016 and headquartered in Hamilton, Bermuda, Borr Drilling expanded its fleet through the acquisition of jack-up rigs from Transocean in 2017.

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