Subsea 7 (OTCMKTS:SUBCY) Shares Gap Down - Should You Sell?

Key Points

• Subsea 7 shares gapped down Friday, opening at $33.2875 after a $35.33 close with light volume (1,085 shares), though the stock remains above its 50-day ($30.06) and 200-day ($24.38) moving averages.
• Analyst sentiment is mixed: Barclays downgraded to a "hold", UBS kept a "sector perform", and Zacks upgraded to "strong-buy", leaving a consensus rating of Moderate Buy (one Strong Buy, three Holds).
• Q1 results showed an EPS miss ($0.34 vs. $0.37 expected) but a revenue beat ($1.79B vs. $1.62B), and the company has low leverage (debt/equity 0.09) with a PE around 19.97.

Subsea 7 SA (OTCMKTS:SUBCY - Get Free Report) gapped down prior to trading on Friday . The stock had previously closed at $35.33, but opened at $33.2875. Subsea 7 shares last traded at $33.2875, with a volume of 1,085 shares traded.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Barclays downgraded Subsea 7 from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 20th. UBS Group reiterated a "sector perform" rating on shares of Subsea 7 in a research report on Friday, May 1st. Finally, Zacks Research upgraded Subsea 7 from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, April 15th. One investment analyst has rated the stock with a Strong Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy".

Subsea 7 Price Performance

The company has a debt-to-equity ratio of 0.09, a current ratio of 1.11 and a quick ratio of 1.09. The firm has a 50-day moving average of $30.06 and a 200-day moving average of $24.38. The stock has a market cap of $9.80 billion, a PE ratio of 19.97 and a beta of 1.12.

Subsea 7 (OTCMKTS:SUBCY - Get Free Report) last released its earnings results on Thursday, April 30th. The energy company reported $0.34 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.37 by ($0.03). Subsea 7 had a return on equity of 11.38% and a net margin of 6.67%.The business had revenue of $1.79 billion for the quarter, compared to analysts' expectations of $1.62 billion. Research analysts predict that Subsea 7 SA will post 2.08 EPS for the current year.

About Subsea 7

Subsea 7 SA is a global engineering, construction and services contractor serving the offshore energy industry. The company specializes in complex subsea infrastructure projects, offering pipeline and riser installation, umbilical and flowline deployment, and subsea tie-ins. Its fleet of specialized vessels, diving systems and remotely operated vehicles (ROVs) supports installation, inspection, maintenance and repair activities across the life cycle of offshore oil, gas and renewable energy fields.

With roots tracing back to the merger of Subsea 7 Inc and Acergy SA in 2011, Subsea 7 has built a broad international footprint.

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