Borr Drilling (NYSE:BORR) Stock Price Down 7.9% - Here's Why

Key Points

• Borr Drilling shares fell 7.9% to about $4.05 during mid-day trading, with 4.9 million shares changing hands. The decline followed weak quarterly results, including an adjusted loss of $0.79 per share versus the expected $0.21 loss and revenue below estimates.
• Analyst sentiment has deteriorated, with multiple firms downgrading the stock to “strong sell.” The consensus rating remains “Hold,” with an average price target of $5.27.
• Despite the selloff, company insiders and institutional investors have increased their holdings: insiders own 7.9% of shares, while institutions and hedge funds own 83.12%.

Borr Drilling Limited (NYSE:BORR - Get Free Report) shares were down 7.9% during mid-day trading on Thursday. The stock traded as low as $4.02 and last traded at $4.0450. 4,920,501 shares were traded during mid-day trading, a decline of 31% from the average daily volume of 7,162,300 shares. The stock had previously closed at $4.39.

Analyst Ratings Changes

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

Borr Drilling Stock Down 8.1%

The company's 50-day moving average price is $4.37 and its 200 day moving average price is $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 cap of $1.27 billion, a PE ratio of -5.18 and a beta of 1.08.

Borr Drilling (NYSE:BORR - Get Free Report) last released its quarterly earnings results on Wednesday, August 12th. The company reported ($0.79) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($0.58). The business had revenue of $232.30 million during the quarter, compared to the consensus estimate of $245.96 million. Borr Drilling had a negative return on equity of 5.95% and a negative net margin of 23.98%. As a group, analysts forecast that Borr Drilling Limited will post -0.51 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Jeffrey Currie purchased 125,000 shares of the company's stock in a transaction that occurred on Thursday, August 13th. The shares were purchased at an average price of $4.01 per share, with a total value of $501,250.00. Following the purchase, the director owned 479,423 shares of the company's stock, valued at $1,922,486.23. The trade was a 35.27% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Harvey Snowling purchased 300,000 shares of the firm's stock in a transaction that occurred on Wednesday, October 14th. The stock was purchased 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. The trade was a 205.56% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 7.90% of the company's stock.

Institutional Investors Weigh In On Borr Drilling

Large investors have recently modified their holdings of the company. Squarepoint Ops LLC boosted its holdings in 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 purchasing an additional 789,214 shares in the last quarter. Goehring & Rozencwajg Associates LLC raised its position in shares of Borr Drilling by 30.6% in the first 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 last quarter. Dimensional Fund Advisors LP boosted its stake 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 worth $20,148,000 after buying an additional 2,185,639 shares during the last quarter. 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 purchasing an additional 761,433 shares during the last quarter. Finally, Lazard Asset Management LLC purchased a new stake in Borr Drilling during the first quarter valued at about $2,160,000. 83.12% of the stock is owned by institutional investors and hedge funds.

About Borr Drilling

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.

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.