Rowan Companies (NYSE:RDC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Thursday.
According to Zacks, “Over the past year, Rowan plunged 12.4%, following the Zacks Oil & Gas Drilling industry’s 23.9% decline. As of Dec 2017, Rowan has only $1.3 billion cash balances, way lower than $2.5 billion of long term debt, reflecting weak balance sheet. The company’s free cashflow also fell 29% despite partial recovery in oil prices. Also, reducing average dayrates of jackup rigs continues to hurt Rowan. Through 2017, the average dayrates of jackup rigs plummeted 23%. Moreover, the introduction of new and more stringent regulations following the Gulf of Mexico oil spill has made deepwater drilling activity prohibitively expensive for exploration and production companies, making many projects marginal. “
A number of other research firms have also weighed in on RDC. B. Riley set a $16.00 target price on shares of Rowan Companies and gave the stock a “buy” rating in a report on Friday, January 5th. Cowen set a $14.00 target price on shares of Rowan Companies and gave the stock a “hold” rating in a report on Thursday, January 11th. Susquehanna Bancshares set a $15.00 target price on shares of Rowan Companies and gave the stock a “hold” rating in a report on Friday, January 12th. Jefferies Group set a $16.00 target price on shares of Rowan Companies and gave the stock a “hold” rating in a report on Thursday, January 4th. Finally, Piper Jaffray Companies lowered shares of Rowan Companies from an “overweight” rating to a “neutral” rating and set a $18.00 target price on the stock. in a report on Thursday, January 11th. Four equities research analysts have rated the stock with a sell rating, thirteen have given a hold rating and seven have given a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $15.10.
Shares of Rowan Companies stock opened at $12.65 on Thursday. Rowan Companies has a 12-month low of $9.02 and a 12-month high of $17.33. The company has a debt-to-equity ratio of 0.47, a current ratio of 6.06 and a quick ratio of 6.06. The stock has a market cap of $1,471.02, a P/E ratio of 22.59 and a beta of 1.81.
Rowan Companies (NYSE:RDC) last posted its earnings results on Wednesday, February 28th. The oil and gas company reported ($0.31) earnings per share for the quarter, missing the Zacks’ consensus estimate of ($0.26) by ($0.05). The firm had revenue of $296.70 million for the quarter, compared to the consensus estimate of $270.28 million. Rowan Companies had a negative return on equity of 1.52% and a net margin of 5.67%. The business’s revenue was down 15.7% on a year-over-year basis. During the same period last year, the company posted $0.08 EPS. sell-side analysts expect that Rowan Companies will post -3.18 EPS for the current year.
In other Rowan Companies news, CFO Stephen M. Butz sold 3,671 shares of the business’s stock in a transaction that occurred on Thursday, February 22nd. The shares were sold at an average price of $12.99, for a total value of $47,686.29. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 0.77% of the stock is owned by insiders.
Several institutional investors have recently made changes to their positions in the company. Macquarie Group Ltd. boosted its stake in shares of Rowan Companies by 890.9% in the 4th quarter. Macquarie Group Ltd. now owns 2,846,804 shares of the oil and gas company’s stock valued at $44,581,000 after purchasing an additional 2,559,509 shares in the last quarter. Millennium Management LLC boosted its stake in shares of Rowan Companies by 71.6% in the 4th quarter. Millennium Management LLC now owns 1,737,951 shares of the oil and gas company’s stock valued at $27,216,000 after purchasing an additional 725,265 shares in the last quarter. Meadow Creek Investment Management LLC boosted its stake in shares of Rowan Companies by 28.6% in the 4th quarter. Meadow Creek Investment Management LLC now owns 20,502 shares of the oil and gas company’s stock valued at $321,000 after purchasing an additional 4,556 shares in the last quarter. Teachers Advisors LLC boosted its stake in shares of Rowan Companies by 11.6% in the 4th quarter. Teachers Advisors LLC now owns 1,745,264 shares of the oil and gas company’s stock valued at $27,331,000 after purchasing an additional 181,695 shares in the last quarter. Finally, Paloma Partners Management Co boosted its stake in shares of Rowan Companies by 128.3% in the 4th quarter. Paloma Partners Management Co now owns 144,692 shares of the oil and gas company’s stock valued at $2,267,000 after purchasing an additional 81,316 shares in the last quarter.
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Rowan Companies Company Profile
Rowan Companies plc is a provider of offshore contract drilling services to the international oil and gas industry. The Company operates through two segments: deepwater and jack-ups. Its deepwater segment consists of drillship operations. As of December 31, 2016, the Company’s fleet consisted of 29 mobile offshore drilling units, including 25 self-elevating jack-up rigs and four ultra-deepwater drillships.
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