McDermott International, Inc. (NYSE:MDR) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued on Wednesday, October 25th.
According to Zacks, “Weak commodity prices have prompted upstream firms to lower capital spending, which has resulted in lesser work for the likes of McDermott. With a considerable portion of MDR’s current backlog associated with offshore operations, it remains more susceptible to the pricing weakness, thus becoming uneconomical. We expect McDermott shares to remain soft until oil prices rebound sufficiently, as deepwater/ultra-deepwater drilling – with its associated risks and steep costs – require a far higher oil price than what is prevailing currently. Since crude prices are expected to remain low well into 2017, cash flows could see a significant decline in the coming months. We are also concerned with the company’s increased spending. As such, McDermott is anticipated to face near-term headwinds and thus we take a bearish stance on the stock.”
A number of other equities analysts have also issued reports on the company. Deutsche Bank AG decreased their price objective on McDermott International from $6.50 to $5.25 and set a “hold” rating for the company in a report on Tuesday, October 24th. KeyCorp reissued a “hold” rating on shares of McDermott International in a report on Friday, October 6th. BidaskClub lowered McDermott International from a “sell” rating to a “strong sell” rating in a report on Thursday, August 17th. Scotiabank reissued a “buy” rating and issued a $9.00 price objective on shares of McDermott International in a report on Friday, July 28th. Finally, TheStreet upgraded McDermott International from a “c” rating to a “b-” rating in a research report on Tuesday, July 25th. One analyst has rated the stock with a sell rating, six have given a hold rating, three have given a buy rating and one has issued a strong buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus target price of $7.94.
Shares of McDermott International (MDR) opened at $7.64 on Wednesday. McDermott International has a one year low of $5.25 and a one year high of $8.33. The stock has a market capitalization of $2,169.83, a P/E ratio of 13.64 and a beta of 1.32. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.30.
McDermott International (NYSE:MDR) last posted its earnings results on Wednesday, November 1st. The oil and gas company reported $0.33 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.19 by $0.14. The company had revenue of $958.50 million during the quarter, compared to analyst estimates of $977.28 million. McDermott International had a return on equity of 9.56% and a net margin of 5.25%. The business’s revenue was up 71.6% compared to the same quarter last year. During the same period in the prior year, the company earned $0.09 earnings per share. equities research analysts expect that McDermott International will post 0.52 EPS for the current fiscal year.
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Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Private Advisor Group LLC acquired a new position in shares of McDermott International in the second quarter worth $106,000. Everence Capital Management Inc. acquired a new position in shares of McDermott International in the second quarter worth $116,000. HighTower Advisors LLC increased its stake in shares of McDermott International by 13.0% in the first quarter. HighTower Advisors LLC now owns 17,396 shares of the oil and gas company’s stock worth $117,000 after acquiring an additional 2,000 shares during the last quarter. Meeder Asset Management Inc. increased its stake in shares of McDermott International by 234.0% in the third quarter. Meeder Asset Management Inc. now owns 16,144 shares of the oil and gas company’s stock worth $117,000 after acquiring an additional 11,310 shares during the last quarter. Finally, Teacher Retirement System of Texas increased its stake in shares of McDermott International by 4.6% in the first quarter. Teacher Retirement System of Texas now owns 19,136 shares of the oil and gas company’s stock worth $129,000 after acquiring an additional 849 shares during the last quarter. Institutional investors own 85.42% of the company’s stock.
About McDermott International
McDermott International, Inc is a provider of integrated engineering, procurement, construction and installation (EPCI), front-end engineering and design (FEED) and module fabrication services for upstream field developments across the world. The Company delivers fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning for offshore and subsea oil and gas projects.
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