Precision Drilling (NYSE:PDS) Stock Price Down 7.4% - Should You Sell?

Key Points

• Precision Drilling shares fell 7.4% to about $72.46, with trading volume 66% below the average session volume. The stock is also below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed: Zacks Research and Weiss Ratings downgraded the stock to sell-equivalent ratings, while several firms maintained Buy or Outperform ratings. MarketBeat reports a consensus “Moderate Buy” rating and an average price target of $122.33.
• Institutional investors own 48.86% of the company, and several major funds increased their positions during the first quarter, including Bank of America, Lazard Asset Management and Arrowstreet Capital.

Shares of Precision Drilling Corporation (NYSE:PDS - Get Free Report) TSE: PD fell 7.4% during trading on Wednesday . The company traded as low as $72.96 and last traded at $72.4570. 40,328 shares were traded during trading, a decline of 66% from the average session volume of 117,933 shares. The stock had previously closed at $78.27.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Zacks Research lowered shares of Precision Drilling from a "hold" rating to a "strong sell" rating in a research note on Wednesday, July 1st. TD Securities reissued a "hold" rating on shares of Precision Drilling in a research report on Friday, May 1st. BMO Capital Markets restated an "outperform" rating on shares of Precision Drilling in a report on Thursday, April 30th. Weiss Ratings cut shares of Precision Drilling from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, June 23rd. Finally, Canadian Imperial Bank of Commerce reaffirmed an "outperform" rating on shares of Precision Drilling in a research report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $122.33.

Precision Drilling Trading Down 7.1%

The company has a debt-to-equity ratio of 0.41, a current ratio of 1.70 and a quick ratio of 1.52. The company has a market capitalization of $934.14 million, a P/E ratio of -77.34 and a beta of 0.76. The firm has a fifty day moving average price of $86.11 and a 200-day moving average price of $87.77.

Hedge Funds Weigh In On Precision Drilling

Several institutional investors have recently added to or reduced their stakes in PDS. Bank of America Corp DE increased its holdings in Precision Drilling by 129.5% during the first quarter. Bank of America Corp DE now owns 114,706 shares of the oil and gas company's stock worth $11,287,000 after buying an additional 64,735 shares during the last quarter. Amundi grew its position in shares of Precision Drilling by 6.9% during the 1st quarter. Amundi now owns 3,095 shares of the oil and gas company's stock valued at $305,000 after acquiring an additional 201 shares during the period. Lazard Asset Management LLC increased its stake in shares of Precision Drilling by 540.1% during the 1st quarter. Lazard Asset Management LLC now owns 25,392 shares of the oil and gas company's stock worth $2,499,000 after purchasing an additional 21,425 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in shares of Precision Drilling by 24.3% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 373,936 shares of the oil and gas company's stock worth $36,803,000 after purchasing an additional 73,084 shares during the period. Finally, Group One Trading LLC purchased a new position in Precision Drilling in the first quarter valued at approximately $81,000. 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.

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