Precision Drilling (NYSE:PDS) Shares Gap Up - Time to Buy?

Key Points

• Precision Drilling shares opened higher at $92.35 after previously closing at $89.94, but later traded near $88.95.
• Analyst sentiment has weakened, with recent downgrades from Weiss Ratings, Zacks Research, and Wall Street Zen; despite this, the overall consensus remains “Moderate Buy” with a $122.33 price target.
• The company missed quarterly earnings expectations, reporting a loss of $0.38 per share versus the expected $0.43 profit, although revenue of $319.15 million exceeded forecasts.

Precision Drilling Corporation (NYSE:PDS - Get Free Report) TSE: PD shares gapped up prior to trading on Thursday . The stock had previously closed at $89.94, but opened at $92.35. Precision Drilling shares last traded at $88.9510, with a volume of 6,625 shares trading hands.

Analyst Ratings Changes

A number of brokerages have recently commented on PDS. Weiss Ratings cut shares of Precision Drilling from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, June 23rd. Zacks Research downgraded shares of Precision Drilling from a "hold" rating to a "strong sell" rating in a research note on Wednesday, July 1st. Finally, Wall Street Zen cut Precision Drilling from a "buy" rating to a "hold" rating in a research report on Sunday, August 9th. One investment 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 given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $122.33.

Precision Drilling Price Performance

The company has a quick ratio of 1.29, a current ratio of 1.46 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $1.14 billion, a PE ratio of -42.85 and a beta of 0.81. The firm's fifty day simple moving average is $83.68 and its 200-day simple moving average is $88.84.

Precision Drilling (NYSE:PDS - Get Free Report) TSE: PD last announced its quarterly earnings results on Tuesday, July 28th. The oil and gas company reported ($0.38) earnings per share for the quarter, missing the consensus estimate of $0.43 by ($0.81). The firm had revenue of $319.15 million for the quarter, compared to the consensus estimate of $310.70 million. Precision Drilling had a negative net margin of 1.68% and a positive return on equity of 2.11%. On average, research analysts forecast that Precision Drilling Corporation will post 4.62 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Sumitomo Mitsui Trust Group Inc. increased its holdings in Precision Drilling by 2.1% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 6,171 shares of the oil and gas company's stock valued at $607,000 after buying an additional 128 shares during the last quarter. Amova Asset Management Americas Inc. grew its position in shares of Precision Drilling by 2.1% during the 1st quarter. Amova Asset Management Americas Inc. now owns 6,171 shares of the oil and gas company's stock valued at $606,000 after acquiring an additional 128 shares during the period. State of Wyoming increased its stake in shares of Precision Drilling by 4.0% in the 4th quarter. State of Wyoming now owns 4,490 shares of the oil and gas company's stock worth $323,000 after purchasing an additional 173 shares in the last quarter. SIR Capital Management L.P. increased its stake in shares of Precision Drilling by 0.4% in the 4th quarter. SIR Capital Management L.P. now owns 56,178 shares of the oil and gas company's stock worth $4,031,000 after purchasing an additional 200 shares in the last quarter. Finally, Amundi raised its holdings in Precision Drilling by 6.9% in the 1st quarter. Amundi now owns 3,095 shares of the oil and gas company's stock worth $305,000 after purchasing an additional 201 shares during the period. 48.86% of the stock is owned by hedge funds and other institutional investors.

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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