Valaris (NYSE:VAL) Trading Down 5.1% - Here's What Happened

Key Points

• Valaris shares fell 5.1% to $83.70 in mid-day trading, with volume down 83% from the stock’s average daily volume.
• Analyst sentiment remains cautious: six analysts rate the stock Hold and one rates it Sell, resulting in a consensus “Reduce” rating and a $66.60 price target.
• Valaris exceeded quarterly expectations, reporting $0.72 in earnings per share versus estimates of $0.31 and revenue of $539.2 million versus $488.5 million, though revenue declined 12.4% year over year.

Valaris Limited (NYSE:VAL - Get Free Report) shares fell 5.1% on Wednesday . The company traded as low as $83.97 and last traded at $83.70. 208,028 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 1,209,068 shares. The stock had previously closed at $88.23.

Analyst Ratings Changes

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

Valaris Stock Performance

The stock's 50-day moving average price is $82.28 and its 200 day moving average price is $88.73. The firm has a market cap of $5.80 billion, a P/E ratio of 6.23 and a beta of 0.93. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.55 and a quick ratio of 1.55.

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, beating analysts' consensus estimates of $0.31 by $0.41. Valaris had a net margin of 43.95% and a return on equity of 9.25%. The business had revenue of $539.20 million during the quarter, compared to the consensus estimate of $488.52 million. During the same quarter last year, the firm earned $1.61 earnings per share. The firm's revenue for the quarter was down 12.4% compared to the same quarter last year. As a group, equities analysts predict that Valaris Limited will post 3.25 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Engineers Gate Manager LP bought a new position in shares of Valaris during the second quarter worth approximately $1,068,000. Squarepoint Ops LLC raised its position in shares of 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 buying an additional 78,105 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Valaris in the second quarter valued at approximately $276,000. BTG Pactual Asset Management US LLC bought a new stake in shares of Valaris in the second quarter valued at approximately $2,258,000. Finally, Quantitative Investment Management LLC acquired a new stake in Valaris during the second quarter worth approximately $871,000. 96.74% of the stock is currently owned by institutional investors.

Valaris Company Profile

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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