Precision Drilling (NYSE:PDS) Shares Gap Up - What's Next?

Key Points

• Precision Drilling shares jumped 4.8%, opening at $90.42 after closing at $87.17, and last traded near $89.32.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $122.33, despite recent upgrades, downgrades and a “sell” rating from Weiss Ratings.
• The company recently missed quarterly EPS estimates, reporting a loss of $0.38 per share, while institutional ownership stands at 48.86% after several major investors increased their holdings.

Precision Drilling Corporation (NYSE:PDS - Get Free Report) TSE: PD's share price gapped up prior to trading on Tuesday. The stock had previously closed at $87.17, but opened at $90.42. Precision Drilling shares last traded at $89.3180, with a volume of 23,459 shares.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on PDS. Weiss Ratings restated a "sell (d+)" rating on shares of Precision Drilling in a research report on Friday, September 18th. TD Securities upgraded shares of Precision Drilling from a "hold" rating to a "buy" rating in a research report on Tuesday. Wall Street Zen downgraded shares of Precision Drilling from a "buy" rating to a "hold" rating in a research report on Sunday, August 9th. Finally, Zacks Research upgraded Precision Drilling from a "strong sell" rating to a "hold" rating in a research note on Monday, September 28th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $122.33.

Precision Drilling Trading Up 4.8%

The firm has a market capitalization of $1.15 billion, a price-to-earnings ratio of -43.72 and a beta of 0.95. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.46 and a quick ratio of 1.29. The firm's 50-day simple moving average is $86.54 and its 200 day simple moving average is $87.19.

Precision Drilling (NYSE:PDS - Get Free Report) TSE: PD last issued its earnings results on Tuesday, July 28th. The oil and gas company reported ($0.38) earnings per share for the quarter, missing analysts' consensus estimates of $0.43 by ($0.81). Precision Drilling had a negative net margin of 1.68% and a positive return on equity of 2.11%. The business had revenue of $319.15 million during the quarter, compared to analyst estimates of $310.70 million. Equities analysts expect that Precision Drilling Corporation will post 4.83 earnings per share for the current year.

Institutional Trading of Precision Drilling

Institutional investors and hedge funds have recently modified their holdings of the business. Bank of America Corp DE lifted its holdings in shares of Precision Drilling by 129.5% in the first quarter. Bank of America Corp DE now owns 114,706 shares of the oil and gas company's stock worth $11,287,000 after acquiring an additional 64,735 shares during the last quarter. Lazard Asset Management LLC boosted its stake in shares of Precision Drilling by 540.1% in the 1st quarter. Lazard Asset Management LLC now owns 25,392 shares of the oil and gas company's stock valued at $2,499,000 after purchasing an additional 21,425 shares in the last quarter. Hillsdale Investment Management Inc. grew its holdings in shares of Precision Drilling by 67.0% during the 1st quarter. Hillsdale Investment Management Inc. now owns 487,434 shares of the oil and gas company's stock valued at $47,957,000 after purchasing an additional 195,598 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Precision Drilling by 37.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 288,013 shares of the oil and gas company's stock valued at $28,340,000 after purchasing an additional 77,775 shares during the last quarter. Finally, Janney Montgomery Scott LLC acquired a new position in Precision Drilling during the 1st quarter worth approximately $823,000. 48.86% of the stock is currently owned by institutional investors.

About Precision Drilling

Precision Drilling Corporation is an oilfield services company that provides contract drilling and related services to oil and natural gas exploration and production companies. Its primary business is the operation of land-based drilling rigs, supported by services such as directional drilling, managed pressure drilling, digital rig technologies and other solutions designed to improve drilling performance, safety and efficiency.

The company also provides completion and production services, including well servicing, camp and equipment rentals, and other support activities used during the construction, maintenance and production phases of oil and gas wells.

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