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

Seadrill Limited (NYSE:SDRL - Get Free Report) shares 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 traded.

Analyst Upgrades and Downgrades

Several brokerages recently commented on SDRL. Citigroup cut their price objective on shares of Seadrill from $46.00 to $35.00 and set a "buy" rating on the stock in a research report on Wednesday, March 19th. BWS Financial reiterated a "buy" rating and issued a $80.00 target price on shares of Seadrill in a research note on Tuesday, May 13th. Finally, BTIG Research set a $28.00 price target on shares of Seadrill in a research report on Monday, May 5th.

Seadrill Stock Performance

The stock has a market capitalization of $1.77 billion, a P/E ratio of 4.97 and a beta of 1.55. The company has a quick ratio of 2.53, a current ratio of 2.53 and a debt-to-equity ratio of 0.21. The business has a fifty day moving average price of $22.73 and a 200-day moving average price of $29.37.

Seadrill (NYSE:SDRL - Get Free Report) last issued its earnings results on Monday, May 12th. The oil and gas company reported ($0.23) earnings per share for the quarter, missing analysts' consensus estimates of $0.25 by ($0.48). The business had revenue of $335.00 million during 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, sell-side analysts expect that Seadrill Limited will post 1.86 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in SDRL. BNP Paribas Financial Markets bought a new stake in Seadrill in the 4th quarter worth approximately $66,400,000. Third Point LLC bought a new stake in shares of Seadrill in the fourth quarter worth $39,903,000. Norges Bank purchased a new stake in Seadrill during the fourth quarter valued at $33,104,000. Adage Capital Partners GP L.L.C. increased its position in Seadrill by 22.5% during the first quarter. Adage Capital Partners GP L.L.C. now owns 4,200,535 shares of the oil and gas company's stock valued at $105,013,000 after acquiring an additional 771,366 shares during the last quarter. Finally, Goehring & Rozencwajg Associates LLC lifted its holdings in Seadrill by 151.9% in the first quarter. Goehring & Rozencwajg Associates LLC now owns 1,200,201 shares of the oil and gas company's stock valued at $30,149,000 after acquiring an additional 723,827 shares during the period. 95.67% of the stock is owned by hedge funds and other institutional investors.

Seadrill Company Profile

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.