According to Zacks, “Diamond Offshore Drilling boasts solid fundamentals with significant free cash flow potential and a clean balance sheet. Moreover, the company intends to increase its footprint in emerging markets (like Australia, Brazil and West Africa) to reap benefits from the recently discovered deepwater fields. This should work well for the company in the long term. Moreover, Diamond Offshore Drilling’s decision to discontinue dividends will lead to annual savings of $69 million and result in more efficient operations. However, near-term headwinds continue to weigh on it. The volatile oil and gas price scenario, geopolitical risks related to international operations, the uneven deepwater markets and expectations of a gradual decline in deepwater rates are concerns going forward.”
Several other analysts also recently weighed in on the company. Scotiabank reissued a sector perform rating on shares of Diamond Offshore Drilling in a report on Wednesday, September 14th. Vetr raised Diamond Offshore Drilling from a buy rating to a strong-buy rating and set a $19.33 target price for the company in a report on Wednesday, October 5th. Credit Suisse Group AG reissued a hold rating and issued a $18.00 target price on shares of Diamond Offshore Drilling in a report on Monday, September 26th. Citigroup Inc. reduced their target price on Diamond Offshore Drilling from $25.00 to $21.00 and set a neutral rating for the company in a report on Thursday, August 25th. Finally, Howard Weil began coverage on Diamond Offshore Drilling in a report on Wednesday, September 14th. They issued a sector perform rating and a $17.00 target price for the company. Seven analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and six have given a buy rating to the company. The stock has an average rating of Hold and a consensus target price of $20.20.
Shares of Diamond Offshore Drilling (NYSE:DO) opened at 17.43 on Thursday. The firm’s market capitalization is $2.39 billion. Diamond Offshore Drilling has a one year low of $14.18 and a one year high of $26.72. The firm has a 50-day moving average price of $16.63 and a 200 day moving average price of $21.56.
Diamond Offshore Drilling (NYSE:DO) last announced its quarterly earnings results on Monday, August 1st. The offshore drilling services provider reported $0.16 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.08 by $0.08. The company earned $388.75 million during the quarter, compared to the consensus estimate of $374.17 million. Diamond Offshore Drilling had a positive return on equity of 9.12% and a negative net margin of 30.20%. Diamond Offshore Drilling’s revenue for the quarter was down 38.7% on a year-over-year basis. During the same period in the previous year, the business earned $0.66 EPS. Equities analysts forecast that Diamond Offshore Drilling will post $1.01 earnings per share for the current fiscal year.
Several hedge funds and other institutional investors have recently modified their holdings of DO. Thompson Rubinstein Investment Management Inc. OR raised its position in shares of Diamond Offshore Drilling by 34.0% in the third quarter. Thompson Rubinstein Investment Management Inc. OR now owns 178,379 shares of the offshore drilling services provider’s stock valued at $3,141,000 after buying an additional 45,280 shares during the period. New England Research & Management Inc. bought a new stake in shares of Diamond Offshore Drilling during the third quarter valued at about $291,000. BNP Paribas Arbitrage SA increased its stake in shares of Diamond Offshore Drilling by 10.5% in the third quarter. BNP Paribas Arbitrage SA now owns 31,579 shares of the offshore drilling services provider’s stock valued at $556,000 after buying an additional 2,990 shares in the last quarter. Macquarie Group Ltd. bought a new stake in shares of Diamond Offshore Drilling during the second quarter valued at about $951,000. Finally, Mason Street Advisors LLC bought a new stake in shares of Diamond Offshore Drilling during the second quarter valued at about $211,000.
About Diamond Offshore Drilling
Diamond Offshore Drilling, Inc is engaged in offshore drilling and providing contract drilling services to the energy industry. The Company has a fleet of approximately 30 offshore drilling rigs, such as semisubmersibles, jack-ups and dynamically positioned (DP) drillships. Its fleet offers a range of services around the world in the floater market (ultra-deepwater, deepwater and mid-water).
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