Borr Drilling (NYSE:BORR) Shares Gap Down – Here’s Why

Borr Drilling Limited (NYSE:BORR)’s stock price gapped down prior to trading on Monday. The stock had previously closed at $4.54, but opened at $4.37. Borr Drilling shares last traded at $4.3450, with a volume of 1,311,566 shares changing hands.

Analyst Upgrades and Downgrades

A number of research firms recently commented on BORR. Weiss Ratings upgraded Borr Drilling from a “sell (d)” rating to a “sell (d+)” rating in a research report on Friday, October 9th. Capital One Financial set a $6.00 target price on shares of Borr Drilling and gave the company an “overweight” rating in a report on Wednesday, July 1st. Zacks Research cut shares of Borr Drilling from a “hold” rating to a “strong sell” rating in a research note on Tuesday, September 15th. Wall Street Zen downgraded shares of Borr Drilling from a “sell” rating to a “strong sell” rating in a report on Saturday, August 8th. Finally, SEB Equity Research set a $3.55 price target on shares of Borr Drilling in a report on Monday, August 17th. Two analysts have rated the stock with a Strong Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $5.27.

Borr Drilling Price Performance

The stock has a market capitalization of $1.35 billion, a price-to-earnings ratio of -5.49 and a beta of 1.08. The company has a 50 day moving average of $4.38 and a 200 day moving average of $4.79. The company has a quick ratio of 2.53, a current ratio of 2.53 and a debt-to-equity ratio of 2.58.

Borr Drilling (NYSE:BORR) last posted its quarterly earnings results on Wednesday, August 12th. The company reported ($0.79) EPS for the quarter, missing the consensus estimate of ($0.21) by ($0.58). Borr Drilling had a negative net margin of 23.98% and a negative return on equity of 5.95%. The business had revenue of $232.30 million during the quarter, compared to analysts’ expectations of $245.96 million. As a group, equities research analysts forecast that Borr Drilling Limited will post -0.48 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Jeffrey Currie acquired 125,000 shares of the company’s stock in a transaction dated Thursday, August 13th. The stock was acquired at an average cost of $4.01 per share, for a total transaction of $501,250.00. Following the acquisition, the director directly owned 479,423 shares in the company, valued at approximately $1,922,486.23. This represents a 35.27% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, COO Harvey Snowling bought 300,000 shares of the business’s stock in a transaction that occurred on Wednesday, October 14th. The stock was purchased at an average cost of $4.91 per share, for a total transaction of $1,473,000.00. Following the completion of the transaction, the chief operating officer directly owned 445,944 shares in the company, valued at approximately $2,189,585.04. This trade represents a 205.56% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 7.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Borr Drilling

A number of institutional investors have recently added to or reduced their stakes in the company. Squarepoint Ops LLC raised its holdings in Borr Drilling by 129.8% in the second quarter. Squarepoint Ops LLC now owns 1,397,369 shares of the company’s stock valued at $5,771,000 after buying an additional 789,214 shares during the period. Goehring & Rozencwajg Associates LLC lifted its position in Borr Drilling by 30.6% during the first quarter. Goehring & Rozencwajg Associates LLC now owns 2,119,465 shares of the company’s stock valued at $12,229,000 after buying an additional 496,302 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in Borr Drilling by 167.3% during the first quarter. Dimensional Fund Advisors LP now owns 3,491,730 shares of the company’s stock worth $20,148,000 after buying an additional 2,185,639 shares during the period. Empowered Funds LLC grew its stake in Borr Drilling by 115.2% during the first quarter. Empowered Funds LLC now owns 1,422,598 shares of the company’s stock worth $8,208,000 after buying an additional 761,433 shares during the period. Finally, Lazard Asset Management LLC purchased a new stake in Borr Drilling during the first quarter worth approximately $2,160,000. Hedge funds and other institutional investors own 83.12% of the company’s stock.

Borr Drilling Company Profile

Borr Drilling Limited (NYSE: BORR) is an offshore drilling contractor that provides drilling services to oil and gas companies. The company focuses primarily on jack-up rigs, which are mobile offshore drilling units used in relatively shallow waters for exploration, development and production drilling.

Borr Drilling owns and operates a fleet of modern jack-up rigs, including premium and high-specification units designed to work in a range of offshore environments. Its services support customers throughout the drilling life cycle, from exploratory wells to development and production activities.

Established in 2016 and headquartered in Hamilton, Bermuda, Borr Drilling expanded its fleet through the acquisition of jack-up rigs from Transocean in 2017.