Valaris Limited (NYSE:VAL) Receives Consensus Rating of "Reduce" from Brokerages

Key Points

• Analyst sentiment is cautious: Nine analysts give Valaris a consensus “Reduce” rating, with one sell and eight hold recommendations. The average 12-month price target is $60.31, below the reported share price of $74.12.
• Susquehanna cut its price target from $98 to $75 while maintaining a neutral rating, and Weiss Ratings downgraded its assessment from “hold (c+)” to “hold (c).”
• Valaris missed quarterly EPS expectations, reporting a loss of $0.24 per share versus the expected $0.05 loss, although revenue of $465.4 million exceeded estimates. Quarterly revenue fell 25% year over year, while institutional investors own 96.74% of the stock.

Valaris Limited (NYSE:VAL - Get Free Report) has received an average recommendation of "Reduce" from the nine analysts that are presently covering the company, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating and eight have issued a hold rating on the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $60.3125.

A number of research firms have commented on VAL. Weiss Ratings lowered Valaris from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, May 6th. Susquehanna lowered their target price on shares of Valaris from $98.00 to $75.00 and set a "neutral" rating on the stock in a report on Wednesday, July 8th.

Hedge Funds Weigh In On Valaris

Several large investors have recently modified their holdings of VAL. Hosking Partners LLP increased its position in shares of Valaris by 21.1% during the 4th quarter. Hosking Partners LLP now owns 299,669 shares of the company's stock valued at $15,103,000 after purchasing an additional 52,278 shares during the last quarter. Hussman Strategic Advisors Inc. bought a new stake in shares of Valaris during the 4th quarter valued at about $1,058,000. Denali Advisors LLC bought a new position in shares of Valaris in the 4th quarter worth about $1,618,000. Jennison Associates LLC purchased a new position in Valaris in the fourth quarter worth about $908,000. Finally, Gallacher Capital Management LLC purchased a new stake in shares of Valaris during the 1st quarter valued at about $1,284,000. Hedge funds and other institutional investors own 96.74% of the company's stock.

Valaris Price Performance

NYSE:VAL opened at $74.12 on Thursday. The stock has a market capitalization of $5.13 billion, a PE ratio of 5.19 and a beta of 0.93. Valaris has a 1-year low of $43.53 and a 1-year high of $114.12. The firm has a fifty day simple moving average of $82.77 and a 200 day simple moving average of $85.16. The company has a current ratio of 1.55, a quick ratio of 1.55 and a debt-to-equity ratio of 0.34.

Valaris (NYSE:VAL - Get Free Report) last released its quarterly earnings data on Monday, May 4th. The company reported ($0.24) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.19). The business had revenue of $465.40 million during the quarter, compared to analyst estimates of $443.75 million. Valaris had a net margin of 45.37% and a return on equity of 12.31%. The business's quarterly revenue was down 25.0% on a year-over-year basis. During the same period in the previous year, the business earned ($0.53) earnings per share. On average, research analysts expect that Valaris will post 3.18 EPS for the current fiscal year.

Valaris Company Profile

Valaris PLC is a leading provider of offshore drilling services to the global energy industry. The company operates a diverse fleet of mobile offshore drilling units, including drillships, semisubmersibles and jackup rigs, designed to support exploration and production activities in deepwater, ultra-deepwater and harsh‐environment settings. Valaris serves a wide range of international oil and gas customers, offering turnkey drilling solutions, project management and advanced technology integration to enhance operational efficiency and safety.

Headquartered in Houston, Texas, Valaris maintains a significant presence in key offshore basins around the world.

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