Seadrill (NYSE:SDRL) Stock Jumps 4.4% - Time to Buy?

Key Points

• Seadrill shares rose 4.4% to about $49.07, although trading volume was roughly 95% below the average session volume.
• Analyst sentiment is generally positive: the stock has an average “Buy” rating and a consensus price target of $59.40, with targets ranging from $55 to $80.
• Seadrill beat quarterly expectations, reporting $0.47 EPS versus the $0.29 consensus and revenue of $430 million versus estimates of $388.46 million; institutional investors own 95.67% of the shares.

Seadrill Limited (NYSE:SDRL - Get Free Report)'s stock price traded up 4.4% on Tuesday. The company traded as high as $49.26 and last traded at $49.0650. Approximately 37,964 shares traded hands during trading, a decline of 95% from the average session volume of 773,937 shares. The stock had previously closed at $46.99.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. Capital One Financial set a $55.00 price objective on Seadrill and gave the company an "overweight" rating in a research report on Wednesday, July 1st. Zacks Research raised Seadrill from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 14th. Citigroup reaffirmed a "neutral" rating on shares of Seadrill in a research note on Monday, September 7th. BWS Financial reissued a "buy" rating and issued a $80.00 price target on shares of Seadrill in a research note on Tuesday, August 11th. Finally, Weiss Ratings upgraded Seadrill from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday. Four investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $59.40.

Seadrill Stock Performance

The firm has a 50 day moving average price of $46.73 and a two-hundred day moving average price of $45.74. The company has a debt-to-equity ratio of 0.26, a quick ratio of 2.50 and a current ratio of 2.50. The company has a market capitalization of $3.07 billion, a P/E ratio of 1,633.67 and a beta of 1.25.

Seadrill (NYSE:SDRL - Get Free Report) last announced its quarterly earnings results on Monday, August 10th. The oil and gas company reported $0.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.18. Seadrill had a net margin of 0.07% and a return on equity of 0.64%. The firm had revenue of $430.00 million during the quarter, compared to the consensus estimate of $388.46 million. On average, research analysts expect that Seadrill Limited will post 0.89 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. GAMMA Investing LLC raised its holdings in Seadrill by 38.2% during the 3rd quarter. GAMMA Investing LLC now owns 2,523 shares of the oil and gas company's stock worth $113,000 after purchasing an additional 698 shares during the last quarter. Farther Finance Advisors LLC raised its holdings in Seadrill by 137.1% in the third quarter. Farther Finance Advisors LLC now owns 17,519 shares of the oil and gas company's stock worth $783,000 after purchasing an additional 10,129 shares during the period. Engineers Gate Manager LP raised its stake in Seadrill by 7.2% during the 2nd quarter. Engineers Gate Manager LP now owns 23,772 shares of the oil and gas company's stock worth $899,000 after buying an additional 1,592 shares during the period. Integrated Wealth Concepts LLC acquired a new stake in shares of Seadrill during the second quarter worth about $92,000. Finally, Squarepoint Ops LLC raised its holdings in Seadrill by 8.4% during the 2nd quarter. Squarepoint Ops LLC now owns 382,188 shares of the oil and gas company's stock worth $14,454,000 after buying an additional 29,588 shares during the period. 95.67% of the stock is currently owned by institutional investors.

Seadrill Company Profile

Seadrill Limited is an offshore drilling contractor that provides drilling services to oil and gas companies worldwide. The company operates and manages offshore drilling units, including drillships and semisubmersible rigs, used to explore for and develop oil and natural gas resources in deepwater and other challenging marine environments.

Its services include contract drilling, rig operations, well construction support and related offshore services. Seadrill's fleet is designed to serve a range of offshore projects, with operations and contract activity spanning major energy-producing regions such as the Gulf of Mexico, Brazil, the North Sea, West Africa and other international markets.

Seadrill was founded in 2005 and has expanded through fleet development, acquisitions and strategic transactions.

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