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

Key Points

• Borr Drilling shares opened higher, rising from a previous close of $4.78 to $4.93 and recently trading near $5.01 on volume of roughly 4.7 million shares.
• Analyst sentiment remains mixed: the stock carries an average “Hold” rating and a $5.27 consensus price target, with ratings ranging from Strong Buy to Strong Sell.
• The company’s latest quarter fell short of expectations, reporting a $0.79 loss per share versus a projected $0.21 loss and revenue below estimates. However, director Jeffrey Currie purchased 125,000 shares, while institutional investors and hedge funds own 83.12% of the stock.

Borr Drilling Limited (NYSE:BORR - Get Free Report) shares gapped up prior to trading on Monday. The stock had previously closed at $4.78, but opened at $4.93. Borr Drilling shares last traded at $5.0050, with a volume of 4,702,357 shares changing hands.

Wall Street Analyst Weigh In

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

Borr Drilling Stock Performance

The firm has a 50-day moving average price of $4.30 and a 200 day moving average price of $4.82. The firm has a market capitalization of $1.59 billion, a PE ratio of -6.47 and a beta of 1.08. The company has a quick ratio of 2.53, a current ratio of 2.53 and a debt-to-equity ratio of 2.58.

Borr Drilling (NYSE:BORR - Get Free Report) last issued its quarterly earnings data on Wednesday, August 12th. The company reported ($0.79) earnings per share for the quarter, missing analysts' consensus estimates of ($0.21) by ($0.58). The firm 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%. Research analysts expect that Borr Drilling Limited will post -0.48 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Jeffrey Currie bought 125,000 shares of the stock in a transaction that occurred on Thursday, August 13th. The stock was bought at an average cost of $4.01 per share, for a total transaction of $501,250.00. Following the acquisition, the director directly owned 479,423 shares of the company's stock, valued at $1,922,486.23. The trade was a 35.27% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. 7.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Borr Drilling

Several institutional investors have recently bought and sold shares of the company. Encompass Capital Advisors LLC purchased a new stake in Borr Drilling during the 4th quarter worth approximately $14,326,000. Dimensional Fund Advisors LP boosted its position in Borr Drilling by 167.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,491,730 shares of the company's stock valued at $20,148,000 after buying an additional 2,185,639 shares during the period. Goehring & Rozencwajg Associates LLC boosted its position in Borr Drilling by 30.6% in the 1st quarter. Goehring & Rozencwajg Associates LLC now owns 2,119,465 shares of the company's stock valued at $12,229,000 after buying an additional 496,302 shares during the period. Fideuram Intesa Sanpaolo Private Banking S.P.A. purchased a new position in Borr Drilling in the 1st quarter valued at approximately $12,061,000. Finally, Empowered Funds LLC grew its stake in shares of Borr Drilling by 115.2% in the first quarter. Empowered Funds LLC now owns 1,422,598 shares of the company's stock worth $8,208,000 after acquiring an additional 761,433 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 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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