Borr Drilling (NYSE:BORR) Share Price Breaks Above 50 Day Moving Average - Should You Sell?

Key Points

• Borr Drilling shares rose above their 50-day moving average, trading near $4.39 versus the $4.37 average, but remained below the 200-day average of $4.88.
• Analyst sentiment is mixed, with an overall “Hold” rating and an average price target of $5.27; several firms recently downgraded the stock to “Sell” or “Strong Sell.”
• The company reported a significant quarterly loss, missing EPS and revenue expectations, while insiders and institutional investors increased their holdings of the stock.

Borr Drilling Limited (NYSE:BORR - Get Free Report)'s stock price crossed above its fifty day moving average during trading on Wednesday. The stock has a fifty day moving average of $4.37 and traded as high as $4.42. Borr Drilling shares last traded at $4.3850, with a volume of 10,475,011 shares traded.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. SEB Equity Research set a $3.55 price objective on Borr Drilling in a research note on Monday, August 17th. Wall Street Zen downgraded Borr Drilling from a "sell" rating to a "strong sell" rating in a report on Saturday, August 8th. Weiss Ratings lowered Borr Drilling from a "sell (d+)" rating to a "sell (d)" rating in a research note on Monday. Zacks Research lowered Borr Drilling from a "hold" rating to a "strong sell" rating in a research note on Tuesday, September 15th. Finally, Capital One Financial set a $6.00 target price on Borr Drilling and gave the company an "overweight" rating in a report on Wednesday, July 1st. Two research analysts have rated the stock with a Strong Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $5.27.

Borr Drilling Price Performance

The company has a 50 day moving average of $4.37 and a 200 day moving average of $4.88. The company has a debt-to-equity ratio of 2.58, a quick ratio of 2.53 and a current ratio of 2.53. The stock has a market capitalization of $1.38 billion, a price-to-earnings ratio of -5.62 and a beta of 1.08.

Borr Drilling (NYSE:BORR - Get Free Report) last posted its quarterly earnings results on Wednesday, August 12th. The company reported ($0.79) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.21) by ($0.58). The company had revenue of $232.30 million during the quarter, compared to analyst estimates 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 research analysts anticipate that Borr Drilling Limited will post -0.51 EPS for the current year.

Insider Buying and Selling

In other news, Director Jeffrey Currie bought 125,000 shares of the business's stock in a transaction that occurred on Thursday, August 13th. The shares were purchased at an average cost of $4.01 per share, for a total transaction of $501,250.00. Following the completion of the purchase, the director owned 479,423 shares of the company's stock, valued at approximately $1,922,486.23. This represents a 35.27% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Harvey Snowling acquired 300,000 shares of the company's stock in a transaction on Wednesday, October 14th. The stock was purchased at an average cost of $4.91 per share, for a total transaction of $1,473,000.00. Following the completion of the transaction, the chief operating officer owned 445,944 shares in the company, valued at approximately $2,189,585.04. The trade was a 205.56% increase in their position. The SEC filing for this purchase provides additional information. 7.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Borr Drilling

A number of institutional investors and hedge funds have recently added to or reduced their stakes in BORR. Dimensional Fund Advisors LP raised its holdings in Borr Drilling by 167.3% during the first quarter. Dimensional Fund Advisors LP now owns 3,491,730 shares of the company's stock worth $20,148,000 after purchasing an additional 2,185,639 shares in the last quarter. Goehring & Rozencwajg Associates LLC lifted its position in shares of Borr Drilling by 30.6% during the 1st quarter. Goehring & Rozencwajg Associates LLC now owns 2,119,465 shares of the company's stock worth $12,229,000 after buying an additional 496,302 shares during the last quarter. Fideuram Intesa Sanpaolo Private Banking S.P.A. purchased a new stake in shares of Borr Drilling during the 1st quarter worth approximately $12,061,000. Empowered Funds LLC boosted its holdings in shares of Borr Drilling by 115.2% in the 1st quarter. Empowered Funds LLC now owns 1,422,598 shares of the company's stock valued at $8,208,000 after buying an additional 761,433 shares in the last quarter. Finally, Squarepoint Ops LLC boosted its holdings in shares of Borr Drilling by 129.8% in the 2nd quarter. Squarepoint Ops LLC now owns 1,397,369 shares of the company's stock valued at $5,771,000 after buying an additional 789,214 shares in the last quarter. 83.12% of the stock is owned by institutional investors and hedge funds.

Borr Drilling Company Profile

Borr Drilling Limited NYSE: BORR is an offshore drilling contractor that provides well-drilling services to oil and gas exploration and production companies. The company primarily operates modern jack-up drilling rigs, which are designed to work in relatively shallow-water offshore environments.

Borr Drilling's services include rig operations, well construction support and related offshore drilling activities. Its jack-up fleet is used for development drilling, exploration and workover projects, with contracts typically awarded by energy companies and other offshore operators.

Founded in 2016, Borr Drilling expanded through the acquisition of a large jack-up rig fleet from Transocean in 2017.

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