Precision Drilling (NYSE:PDS) Stock Price Down 7.1% - Time to Sell?

Key Points

• Shares fell 7.1% to about $83 on Friday, trading as low as $84.06 on sharply reduced volume (≈15,115 shares, down ~88% from the 130,714 average).
• Analysts are mixed but the consensus is a “Moderate Buy” with a consensus price target of $122.33, despite several recent downgrades to hold or sell by some firms.
• Latest quarter showed an EPS beat ($1.37 vs. $1.11 estimate) but revenue missed substantially ($349.4M vs. $489.8M) and the company’s trailing P/E is deeply negative (-213.82), signaling uneven profitability.

Precision Drilling Corporation (NYSE:PDS - Get Free Report) TSE: PD's share price dropped 7.1% on Friday . The stock traded as low as $84.06 and last traded at $82.9550. Approximately 15,115 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 130,714 shares. The stock had previously closed at $89.33.

Wall Street Analyst Weigh In

PDS has been the topic of several research reports. TD Securities reissued a "hold" rating on shares of Precision Drilling in a report on Thursday, February 12th. Loop Capital set a $122.00 target price on shares of Precision Drilling in a research report on Monday, March 2nd. Wall Street Zen cut Precision Drilling from a "buy" rating to a "hold" rating in a report on Sunday, March 22nd. Zacks Research upgraded Precision Drilling from a "strong sell" rating to a "hold" rating in a report on Friday, January 30th. Finally, Weiss Ratings cut Precision Drilling from a "hold (c)" rating to a "sell (d+)" rating in a report on Thursday, March 12th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $122.33.

Precision Drilling Trading Down 6.0%

The firm's fifty day moving average price is $91.91 and its 200-day moving average price is $74.58. The company has a market cap of $1.08 billion, a price-to-earnings ratio of -213.82 and a beta of 0.96. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.62 and a quick ratio of 1.46.

Precision Drilling (NYSE:PDS - Get Free Report) TSE: PD last released its earnings results on Wednesday, February 11th. The oil and gas company reported $1.37 EPS for the quarter, beating the consensus estimate of $1.11 by $0.26. The firm had revenue of $349.37 million for the quarter, compared to analysts' expectations of $489.80 million. Precision Drilling had a net margin of 0.05% and a return on equity of 4.12%. On average, equities analysts expect that Precision Drilling Corporation will post 7.1 EPS for the current fiscal year.

Institutional Investors Weigh In On Precision Drilling

Several large investors have recently made changes to their positions in the company. Cubist Systematic Strategies LLC bought a new stake in Precision Drilling during the first quarter valued at about $45,000. Quarry LP bought a new stake in shares of Precision Drilling in the 3rd quarter valued at about $54,000. Raymond James Financial Inc. bought a new stake in shares of Precision Drilling in the 2nd quarter valued at about $57,000. Wolverine Asset Management LLC boosted its position in shares of Precision Drilling by 112.9% during the fourth quarter. Wolverine Asset Management LLC now owns 802 shares of the oil and gas company's stock worth $58,000 after purchasing an additional 7,000 shares in the last quarter. Finally, US Bancorp DE boosted its position in shares of Precision Drilling by 52.3% during the third quarter. US Bancorp DE now owns 1,188 shares of the oil and gas company's stock worth $67,000 after purchasing an additional 408 shares in the last quarter. Institutional investors own 48.86% of the company's stock.

About Precision Drilling

Precision Drilling Corporation NYSE: PDS is a Calgary, Alberta–based oilfield services company that has provided drilling solutions since its founding in 1951. With more than seven decades of industry experience, the company delivers contract drilling services, directional and horizontal drilling, well servicing, and a suite of specialized equipment designed to meet the evolving needs of exploration and production companies worldwide.

The company's core business activities include operating a fleet of onshore drilling rigs, offering managed pressure drilling, measurement-while-drilling (MWD) and logging-while-drilling (LWD) services, and providing completion and workover rigs.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.