Precision Drilling (NYSE:PDS) Stock Passes Above 200 Day Moving Average - Should You Sell?

Key Points

• Precision Drilling's stock price has recently surpassed its 200-day moving average of $49.03, trading at $58.84 with a high of $59.53.
• Analysts have set a consensus price target of $87.00 for the stock, with ratings varying from "Buy" to "Hold" among different research firms.
• Institutional investment in Precision Drilling has increased, with significant purchases made by Orion Resource Partners and others during the second quarter, indicating growing confidence in the stock.

Precision Drilling Corporation (NYSE:PDS - Get Free Report) TSE: PD's stock price crossed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $49.03 and traded as high as $59.53. Precision Drilling shares last traded at $58.84, with a volume of 69,076 shares.

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. Royal Bank Of Canada boosted their target price on Precision Drilling from $89.00 to $100.00 and gave the stock an "outperform" rating in a report on Thursday, July 31st. Piper Sandler reaffirmed an "overweight" rating and issued a $74.00 price target (up previously from $72.00) on shares of Precision Drilling in a report on Thursday, August 14th. Finally, Zacks Research cut Precision Drilling from a "strong-buy" rating to a "hold" rating in a report on Monday, September 15th. Three research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $87.00.

Precision Drilling Stock Performance

The firm's 50 day simple moving average is $55.77 and its 200-day simple moving average is $49.03. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.90 and a current ratio of 1.01. The company has a market capitalization of $775.45 million, a price-to-earnings ratio of 12.39 and a beta of 1.15.

Precision Drilling (NYSE:PDS - Get Free Report) TSE: PD last announced its earnings results on Tuesday, July 29th. The oil and gas company reported $0.77 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.02) by $0.79. Precision Drilling had a net margin of 5.67% and a return on equity of 6.21%. The company had revenue of $299.14 million for the quarter, compared to the consensus estimate of $435.47 million. Analysts expect that Precision Drilling Corporation will post 7.1 EPS for the current year.

Hedge Funds Weigh In On Precision Drilling

Several institutional investors and hedge funds have recently modified their holdings of the stock. Orion Resource Partners LP purchased a new position in shares of Precision Drilling during the 2nd quarter valued at $642,000. Lighthouse Investment Partners LLC purchased a new position in shares of Precision Drilling during the 2nd quarter valued at $499,000. Raymond James Financial Inc. purchased a new position in shares of Precision Drilling during the 2nd quarter valued at $57,000. Arrowstreet Capital Limited Partnership grew its holdings in shares of Precision Drilling by 275.5% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 387,598 shares of the oil and gas company's stock valued at $18,338,000 after acquiring an additional 284,384 shares in the last quarter. Finally, Aegis Financial Corp grew its holdings in shares of Precision Drilling by 10.2% during the 2nd quarter. Aegis Financial Corp now owns 215,396 shares of the oil and gas company's stock valued at $10,182,000 after acquiring an additional 19,891 shares in the last quarter. 48.86% of the stock is currently owned by hedge funds and other institutional investors.

Precision Drilling Company Profile

Precision Drilling Corporation, a drilling company, provides onshore drilling, completion, and production services to exploration and production companies in the oil and natural gas and geothermal industries in North America and the Middle East. The company operates through Contract Drilling Services and Completion and Production Services segments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.