Seadrill (NYSE:SDRL) Shares Gap Up Following Earnings Beat

Key Points

• Seadrill shares jumped after the company reported quarterly EPS of $0.47, exceeding the $0.29 consensus estimate, while revenue reached $430 million versus expectations of $388.46 million.
• The stock opened at $46.59, up from a prior close of $43.24, and last traded near $46.07 on volume of 115,000 shares.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $55.00; institutional investors own 95.67% of the company.

Seadrill Limited (NYSE:SDRL - Get Free Report) gapped up prior to trading on Monday following a better than expected earnings announcement. The stock had previously closed at $43.24, but opened at $46.59. Seadrill shares last traded at $46.0650, with a volume of 115,000 shares traded.

The oil and gas company reported $0.47 EPS for the quarter, topping the consensus estimate of $0.29 by $0.18. Seadrill had a negative return on equity of 1.84% and a negative net margin of 4.79%.The firm had revenue of $430.00 million during the quarter, compared to analysts' expectations of $388.46 million.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on SDRL shares. Capital One Financial set a $55.00 target price on shares of Seadrill and gave the company an "overweight" rating in a research report on Wednesday, July 1st. Zacks Research raised shares of Seadrill from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 28th. Citigroup raised their price target on shares of Seadrill from $46.00 to $48.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 15th. Barclays raised Seadrill from an "equal weight" rating to an "overweight" rating and lifted their price objective for the company from $41.00 to $59.00 in a report on Thursday, May 7th. Finally, BWS Financial reiterated a "buy" rating and issued a $80.00 price objective on shares of Seadrill in a research note on Monday, June 29th. Three analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Seadrill has a consensus rating of "Moderate Buy" and an average price target of $55.00.

Institutional Trading of Seadrill

Several large investors have recently added to or reduced their stakes in SDRL. Raymond James Financial Inc. bought a new stake in Seadrill during the 2nd quarter worth about $27,000. State of Wyoming bought a new position in shares of Seadrill in the second quarter worth about $55,000. Aquatic Capital Management LLC bought a new position in shares of Seadrill in the third quarter worth about $44,000. EverSource Wealth Advisors LLC acquired a new position in shares of Seadrill during the second quarter worth approximately $42,000. Finally, CIBC Private Wealth Group LLC acquired a new position in shares of Seadrill during the third quarter worth approximately $61,000. 95.67% of the stock is owned by institutional investors.

Seadrill Price Performance

The company has a debt-to-equity ratio of 0.22, a current ratio of 1.94 and a quick ratio of 1.94. The company's 50 day moving average price is $42.06 and its 200 day moving average price is $44.03. The firm has a market capitalization of $2.86 billion, a P/E ratio of -40.86 and a beta of 1.21.

About Seadrill

Seadrill Limited, trading on the New York Stock Exchange under the symbol SDRL, is a leading provider of offshore drilling services to the global oil and gas industry. The company specializes in the design, construction, deployment and operation of mobile offshore drilling units, serving major exploration and production companies with turnkey drilling solutions.

Seadrill’s fleet comprises ultra-deepwater drillships, semi-submersible rigs and high-specification jack-up units capable of operating in some of the world’s most challenging offshore environments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source