Seadrill (NYSE:SDRL) Shares Gap Up - Should You Buy?

Seadrill Limited (NYSE:SDRL - Get Free Report)'s share price gapped up prior to trading on Monday . The stock had previously closed at $25.17, but opened at $26.77. Seadrill shares last traded at $27.50, with a volume of 181,463 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on SDRL shares. BTIG Research set a $28.00 target price on Seadrill in a report on Monday, May 5th. Citigroup cut their price target on shares of Seadrill from $46.00 to $35.00 and set a "buy" rating for the company in a research note on Wednesday, March 19th. Finally, BWS Financial reiterated a "buy" rating and set a $80.00 target price on shares of Seadrill in a report on Tuesday, May 13th.

Seadrill Stock Performance

The firm has a market capitalization of $1.71 billion, a P/E ratio of 4.79 and a beta of 1.55. The company has a debt-to-equity ratio of 0.21, a current ratio of 2.53 and a quick ratio of 2.53. The firm has a 50-day moving average price of $22.25 and a two-hundred day moving average price of $29.66.

Seadrill (NYSE:SDRL - Get Free Report) last released its quarterly earnings results on Monday, May 12th. The oil and gas company reported ($0.23) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.25 by ($0.48). The company had revenue of $335.00 million for the quarter, compared to analysts' expectations of $325.69 million. Seadrill had a return on equity of 7.24% and a net margin of 27.79%. On average, analysts forecast that Seadrill Limited will post 1.86 EPS for the current fiscal year.

Institutional Trading of Seadrill

A number of institutional investors and hedge funds have recently made changes to their positions in SDRL. Ameriprise Financial Inc. acquired a new position in shares of Seadrill in the 4th quarter valued at $409,000. JPMorgan Chase & Co. raised its stake in shares of Seadrill by 134.8% in the fourth quarter. JPMorgan Chase & Co. now owns 206,738 shares of the oil and gas company's stock valued at $8,048,000 after buying an additional 118,699 shares during the period. Third Point LLC purchased a new stake in shares of Seadrill in the 4th quarter valued at about $39,903,000. Tudor Investment Corp ET AL purchased a new position in shares of Seadrill in the fourth quarter worth $3,652,000. Finally, Lloyd Harbor Capital Management LLC bought a new stake in shares of Seadrill in the 4th quarter worth approximately $7,786,000. Institutional investors and hedge funds own 95.67% of the company's stock.

About Seadrill

Seadrill Ltd. engages in the provision of offshore drilling services to the oil and gas industry. It operates through the following segments: Floaters, Jack-up rigs, and Other. The Floaters segment encompasses drilling, completion, and maintenance of offshore exploration and production wells. the Jack-up Rigs segment includes drilling contracts relate to jack-up rigs for operations in harsh and benign environments in shallow water.

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