Valaris (NYSE:VAL) Stock Price Up 4% - Here's What Happened

Key Points

• Valaris shares rose 4% to approximately $84.55 in mid-day trading, although trading volume was down 92% from the average session.
• The company reported quarterly EPS of $0.72, beating estimates of $0.31, while revenue of $539.2 million also exceeded forecasts; however, revenue declined 12.4% year over year.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and average price target of $66.60. Hedge funds and other institutional investors own 96.74% of the company, with several investors recently increasing or initiating positions.

Valaris Limited (NYSE:VAL - Get Free Report)'s stock price traded up 4% during mid-day trading on Tuesday . The company traded as high as $84.37 and last traded at $84.5460. 100,193 shares changed hands during mid-day trading, a decline of 92% from the average session volume of 1,203,223 shares. The stock had previously closed at $81.27.

Analyst Ratings Changes

Several equities research analysts have weighed in on VAL shares. Susquehanna upped their price target on Valaris from $75.00 to $80.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. Weiss Ratings upgraded Valaris from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, August 17th. Six analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $66.60.

Valaris Stock Up 7.7%

The firm has a 50-day moving average price of $82.01 and a two-hundred day moving average price of $88.78. The firm has a market cap of $6.08 billion, a price-to-earnings ratio of 6.54 and a beta of 0.93. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.55 and a current ratio of 1.55.

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

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Engineers Gate Manager LP acquired a new stake in Valaris during the 2nd quarter worth $1,068,000. Squarepoint Ops LLC boosted its stake in Valaris by 48.7% in the second quarter. Squarepoint Ops LLC now owns 238,445 shares of the company's stock valued at $17,311,000 after acquiring an additional 78,105 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Valaris during the second quarter worth about $276,000. BTG Pactual Asset Management US LLC acquired a new stake in shares of Valaris during the second quarter worth about $2,258,000. Finally, Quantitative Investment Management LLC acquired a new stake in shares of Valaris during the second quarter worth about $871,000. 96.74% of the stock is owned by hedge funds and other institutional investors.

About Valaris

Valaris Limited NYSE: VAL is an offshore contract drilling company that provides drilling services to energy companies worldwide. The company supports exploration and production activities in offshore oil and natural gas fields, operating mobile offshore drilling units for customers under contract.

Valaris' fleet includes drillships, semisubmersible rigs and jackup rigs. These units are designed for a range of offshore environments, from relatively shallow waters to deepwater and harsh-environment locations.

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