Valaris (NYSE:VAL) Stock Jumps 5.5% - What's Next?

Key Points

• Valaris shares jumped 5.5% to $97.25 in Friday trading, although volume was about 95% below the average session level.
• Analyst sentiment remains cautious: six analysts rate the stock Hold and one rates it Sell, producing a consensus “Reduce” rating and a $67.80 target price.
• The company beat quarterly expectations with $0.72 in EPS versus $0.31 expected and revenue of $539.2 million, but revenue fell 12.4% year over year. Institutional investors own 96.74% of the stock.

Valaris Limited (NYSE:VAL - Get Free Report) shot up 5.5% on Friday. The stock traded as high as $95.54 and last traded at $97.25. 59,637 shares were traded during mid-day trading, a decline of 95% from the average session volume of 1,181,127 shares. The stock had previously closed at $92.19.

Analyst Ratings Changes

A number of analysts have recently weighed in on VAL shares. Susquehanna upped their target price on Valaris from $80.00 to $86.00 and gave the company a "neutral" rating in a research report on Monday, October 5th. Wall Street Zen raised Valaris to a "hold" rating in a research note on Saturday, October 17th. Finally, Weiss Ratings raised Valaris from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, August 17th. Six equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $67.80.

Valaris Price Performance

The business's 50 day moving average is $84.93 and its 200-day moving average is $86.57. The firm has a market capitalization of $6.86 billion, a P/E ratio of 7.37 and a beta of 1.04. The company has a quick ratio of 1.55, a current ratio of 1.55 and a debt-to-equity ratio of 0.34.

Valaris (NYSE:VAL - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $0.72 earnings per share for the quarter, topping the consensus estimate of $0.31 by $0.41. The firm had revenue of $539.20 million during the quarter, compared to analysts' expectations of $488.52 million. Valaris had a return on equity of 9.25% and a net margin of 43.95%. The company's quarterly revenue was down 12.4% on a year-over-year basis. During the same period in the prior year, the company earned $1.61 earnings per share. As a group, sell-side analysts predict that Valaris Limited will post 3.25 EPS for the current fiscal year.

Hedge Funds Weigh In On Valaris

Institutional investors have recently modified their holdings of the business. Public Employees Retirement System of Ohio acquired a new stake in Valaris in the second quarter valued at about $42,000. Harbor Investment Advisory LLC bought a new position in Valaris in the second quarter valued at about $46,000. V Square Quantitative Management LLC grew its position in Valaris by 59.6% in the third quarter. V Square Quantitative Management LLC now owns 838 shares of the company's stock valued at $66,000 after acquiring an additional 313 shares during the last quarter. Parallel Advisors LLC raised its stake in Valaris by 33.5% during the first quarter. Parallel Advisors LLC now owns 1,065 shares of the company's stock worth $104,000 after acquiring an additional 267 shares in the last quarter. Finally, Longview Financial Advisors Inc. acquired a new position in Valaris during the first quarter worth about $105,000. Institutional investors and hedge funds own 96.74% of the company's stock.

Valaris Company Profile

Valaris plc is an offshore contract drilling company that provides drilling services to oil and gas operators worldwide. The company works with customers to support offshore exploration, appraisal and development programs in shallow-water and deepwater environments.

Valaris operates a fleet that includes drillships, semisubmersible rigs and jackup rigs. Its services include mobile offshore drilling, well construction support and related rig-management and operational services. The company's fleet is designed to serve a range of offshore projects, from conventional shelf developments to technically demanding deepwater wells.

With operations spanning major offshore energy regions, Valaris has served customers in areas including the Gulf of Mexico, the North Sea, Brazil, West Africa, the Middle East and the Asia-Pacific region.

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