Borr Drilling (NYSE:BORR) Shares Gap Down Following Weak Earnings

Borr Drilling Limited (NYSE:BORR) shares gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $4.26, but opened at $3.91. Borr Drilling shares last traded at $3.8350, with a volume of 2,547,057 shares trading hands.

The company reported ($0.79) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.21) by ($0.58). The business had revenue of $232.30 million for the quarter, compared to the consensus estimate of $245.96 million. Borr Drilling had a net margin of 3.13% and a return on equity of 2.88%.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the company. Zacks Research upgraded Borr Drilling to a “hold” rating in a research note on Thursday, July 2nd. Capital One Financial set a $6.00 price objective on shares of Borr Drilling and gave the stock an “overweight” rating in a research note on Wednesday, July 1st. Wall Street Zen cut shares of Borr Drilling from a “sell” rating to a “strong sell” rating in a research note on Saturday. Fearnley Fonds upgraded Borr Drilling from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, April 21st. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Borr Drilling in a research report on Wednesday, June 24th. Two equities research analysts have rated the stock with a Strong Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $4.88.

Insider Activity

In related news, Director Thiago Mordehachvili sold 8,000,000 shares of the business’s stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $4.70, for a total value of $37,600,000.00. Following the sale, the director directly owned 38,199,677 shares in the company, valued at approximately $179,538,481.90. The trade was a 17.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 7.90% of the company’s stock.

Institutional Trading of Borr Drilling

A number of large investors have recently added to or reduced their stakes in the company. Sona Asset Management US LLC purchased a new stake in shares of Borr Drilling during the 3rd quarter valued at about $17,180,000. DNB Asset Management AS lifted its stake in shares of Borr Drilling by 126.4% in the 4th quarter. DNB Asset Management AS now owns 8,771,876 shares of the company’s stock valued at $35,351,000 after purchasing an additional 4,896,701 shares during the last quarter. Marshall Wace LLP raised its holdings in Borr Drilling by 9,222.0% during the 4th quarter. Marshall Wace LLP now owns 4,573,837 shares of the company’s stock valued at $18,433,000 after buying an additional 4,524,772 shares during the period. Encompass Capital Advisors LLC bought a new position in Borr Drilling during the fourth quarter valued at $14,326,000. Finally, Millennium Management LLC lifted its holdings in shares of Borr Drilling by 1,025.5% in the 1st quarter. Millennium Management LLC now owns 3,810,556 shares of the company’s stock worth $8,345,000 after acquiring an additional 3,471,979 shares during the last quarter. Institutional investors own 83.12% of the company’s stock.

Borr Drilling Price Performance

The firm’s fifty day moving average is $4.31 and its 200 day moving average is $5.12. The company has a market capitalization of $1.21 billion, a P/E ratio of 25.50 and a beta of 1.02. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.63 and a current ratio of 1.63.

About Borr Drilling

Borr Drilling is an international offshore drilling contractor providing premium jack-up drilling services to the oil and gas industry. Established in 2016 and incorporated in Bermuda with headquarters in Hamilton, the company is listed on the New York Stock Exchange under the ticker symbol BORR. Borr Drilling focuses exclusively on the ownership and operation of mobile offshore jack-up rigs, catering to exploration and production drilling projects in both mature and emerging hydrocarbon regions.

The company’s core business activities encompass the long-term contracting of high-specification jack-up rigs suitable for shallow-to-intermediate water depths.