Borr Drilling (NYSE:BORR) Shares Gap Down - Here's Why

Key Points

• Borr Drilling shares fell sharply, opening at $4.37 versus a prior close of $4.54 and last trading near $4.35. The stock remains below its 200-day moving average of $4.79.
• Analyst sentiment is mixed but leans cautious: the consensus rating is “Hold” with an average price target of $5.27, while several firms recently downgraded the stock to “Strong Sell.”
• The company reported a significant quarterly loss, with EPS of negative $0.79 versus expectations of negative $0.21, and revenue of $232.3 million below the $246.0 million consensus estimate. Meanwhile, insiders purchased shares, including the COO’s $1.47 million acquisition.

Borr Drilling Limited (NYSE:BORR - Get Free Report)'s stock price gapped down prior to trading on Monday. The stock had previously closed at $4.54, but opened at $4.37. Borr Drilling shares last traded at $4.3450, with a volume of 1,311,566 shares trading hands.

Analyst Ratings Changes

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

Borr Drilling Price Performance

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's 50 day moving average is $4.38 and its 200 day moving average is $4.79. The stock has a market cap of $1.35 billion, a price-to-earnings ratio of -5.49 and a beta of 1.08.

Borr Drilling (NYSE:BORR - Get Free Report) last issued its 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 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%. Research analysts forecast that Borr Drilling Limited will post -0.48 earnings per share for the current fiscal year.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Borr Drilling

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Optiver Holding B.V. grew its position in shares of Borr Drilling by 186.4% in the first quarter. Optiver Holding B.V. now owns 5,060 shares of the company's stock valued at $29,000 after purchasing an additional 3,293 shares during the last quarter. Caitong International Asset Management Co. Ltd lifted its stake in Borr Drilling by 2,435.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 8,467 shares of the company's stock valued at $34,000 after buying an additional 8,133 shares in the last quarter. Fortitude Family Office LLC lifted its stake 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 buying an additional 8,478 shares in the last quarter. State of Alaska Department of Revenue acquired a new stake in Borr Drilling during the 3rd quarter valued at $41,000. Finally, Cetera Investment Advisers acquired a new stake in Borr Drilling during the 1st quarter valued at $66,000. Institutional investors and hedge funds own 83.12% of the company's stock.

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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