Subsea 7 (OTCMKTS:SUBCY) Shares Gap Down - Time to Sell?

Key Points

• Subsea 7 shares dropped sharply, opening at $31.50 versus a prior close of $34.375 and last trading near $31.42 on relatively low volume.
• Analyst sentiment remains mixed but leans positive: recent upgrades from UBS and Redburn helped support a “Moderate Buy” consensus, despite downgrades from Barclays and Zacks Research.
• The company’s latest quarterly results were mixed, with revenue of $1.79 billion exceeding expectations but earnings per share of $0.34 missing the $0.37 consensus estimate.

Subsea 7 SA (OTCMKTS:SUBCY - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $34.3750, but opened at $31.50. Subsea 7 shares last traded at $31.4190, with a volume of 3,788 shares.

Analyst Ratings Changes

SUBCY has been the subject of several analyst reports. UBS Group raised Subsea 7 from an "overweight" rating to a "buy" rating in a report on Thursday, July 23rd. Rothschild & Co Redburn raised Subsea 7 from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 23rd. Barclays cut Subsea 7 from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 20th. Finally, Zacks Research downgraded Subsea 7 from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 14th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy".

Subsea 7 Stock Performance

The company has a current ratio of 1.11, a quick ratio of 1.09 and a debt-to-equity ratio of 0.09. The company has a market cap of $9.24 billion, a P/E ratio of 18.83 and a beta of 1.08. The company has a 50 day moving average price of $34.44 and a 200-day moving average price of $30.52.

Subsea 7 (OTCMKTS:SUBCY - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The energy company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.37 by ($0.03). The business had revenue of $1.79 billion for the quarter, compared to the consensus estimate of $1.62 billion. Subsea 7 had a return on equity of 11.38% and a net margin of 6.67%. On average, equities analysts expect that Subsea 7 SA will post 2.32 earnings per share for the current fiscal 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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