Precision Drilling (NYSE:PDS) Shares Up 5% - Should You Buy?

Key Points

• Precision Drilling shares rose 5% to about $94.99, although trading volume was 96% below the average daily level.
• Analyst sentiment is mixed but leans positive: the stock has a “Moderate Buy” consensus rating and an average price target of $129.25, including TD Securities’ upgrade to “Buy” with a $150 target.
• The company’s latest quarter showed a wider-than-expected loss of $0.38 per share despite revenue exceeding estimates; Precision Drilling remains marginally unprofitable, with a negative net margin of 1.68%.

Precision Drilling Corporation (NYSE:PDS - Get Free Report) TSE: PD's stock price traded up 5% during mid-day trading on Friday. The stock traded as high as $93.11 and last traded at $94.9930. Approximately 4,513 shares changed hands during trading, a decline of 96% from the average daily volume of 115,876 shares. The stock had previously closed at $90.43.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on PDS. Weiss Ratings reissued a "sell (d+)" rating on shares of Precision Drilling in a research report on Friday, September 18th. Wall Street Zen lowered Precision Drilling from a "buy" rating to a "hold" rating in a research report on Sunday, August 9th. Zacks Research raised Precision Drilling from a "strong sell" rating to a "hold" rating in a research note on Monday, September 28th. Finally, TD Securities upgraded Precision Drilling from a "hold" rating to a "buy" rating and lifted their price target for the company from $116.00 to $150.00 in a report on Tuesday. One equities research 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 issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $129.25.

Precision Drilling Price Performance

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 stock has a market capitalization of $1.21 billion, a P/E ratio of -45.85 and a beta of 0.95. The stock's fifty day moving average is $87.04 and its 200-day moving average is $87.14.

Precision Drilling (NYSE:PDS - Get Free Report) TSE: PD last posted its 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 company 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, equities analysts anticipate that Precision Drilling Corporation will post 4.71 earnings per share for the current year.

Institutional Investors Weigh In On Precision Drilling

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Engineers Gate Manager LP raised its position in shares of Precision Drilling by 70.8% in the second quarter. Engineers Gate Manager LP now owns 31,802 shares of the oil and gas company's stock valued at $2,438,000 after purchasing an additional 13,188 shares during the period. TD Waterhouse Canada Inc. lifted its stake in shares of Precision Drilling by 21.2% in the second quarter. TD Waterhouse Canada Inc. now owns 12,341 shares of the oil and gas company's stock worth $929,000 after buying an additional 2,155 shares during the last quarter. Public Employees Retirement System of Ohio bought a new stake in shares of Precision Drilling during the 2nd quarter worth $557,000. Plato Investment Management Ltd bought a new stake in shares of Precision Drilling during the 2nd quarter worth $190,000. Finally, Bank of America Corp DE lifted its position in Precision Drilling by 129.5% during the 1st 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. 48.86% of the stock is currently owned by institutional investors and hedge funds.

Precision Drilling Company Profile

Precision Drilling Corporation is an oilfield services company headquartered in Calgary, Alberta. The company provides contract drilling and related services to oil and natural gas exploration and production companies, with operations serving customers primarily in Canada and the United States as well as selected international markets.

Its Contract Drilling Services segment operates land-based drilling rigs and provides associated equipment, personnel and technical expertise. Precision also offers directional drilling and other technologies designed to support the construction of complex horizontal and extended-reach wells.

Through its Completion and Production Services business, the company provides well servicing, snubbing, rental equipment, camp and catering services, and other support activities used during well completion, maintenance and production.

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