Rowan Companies Target of Unusually Large Options Trading (RDC)

Rowan Companies PLC (NYSE:RDC) was the target of unusually large options trading on Thursday. Traders purchased 6,045 call options on the company. This is an increase of 1,992% compared to the typical volume of 289 call options.

RDC stock traded up $0.26 during midday trading on Friday, reaching $18.78. The company had a trading volume of 2,618,648 shares, compared to its average volume of 2,824,361. Rowan Companies has a 1-year low of $10.94 and a 1-year high of $19.30. The company has a quick ratio of 6.09, a current ratio of 6.09 and a debt-to-equity ratio of 0.48. The company has a market cap of $2.39 billion, a PE ratio of -29.34 and a beta of 1.80.

Rowan Companies (NYSE:RDC) last released its earnings results on Wednesday, August 1st. The oil and gas company reported ($0.60) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.93) by $0.33. Rowan Companies had a negative return on equity of 4.70% and a negative net margin of 9.41%. The firm had revenue of $241.30 million for the quarter, compared to analysts’ expectations of $207.71 million. During the same quarter in the previous year, the business posted ($0.25) earnings per share. The business’s revenue for the quarter was down 24.6% on a year-over-year basis. On average, analysts anticipate that Rowan Companies will post -3.55 EPS for the current fiscal year.

A number of institutional investors have recently added to or reduced their stakes in the business. Millennium Management LLC grew its holdings in shares of Rowan Companies by 126.7% during the first quarter. Millennium Management LLC now owns 3,939,908 shares of the oil and gas company’s stock worth $45,467,000 after purchasing an additional 2,201,957 shares during the last quarter. BlackRock Inc. grew its holdings in shares of Rowan Companies by 8.4% during the second quarter. BlackRock Inc. now owns 14,089,013 shares of the oil and gas company’s stock worth $228,524,000 after purchasing an additional 1,093,323 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Rowan Companies by 8.1% during the first quarter. Dimensional Fund Advisors LP now owns 10,666,456 shares of the oil and gas company’s stock worth $123,091,000 after purchasing an additional 795,237 shares during the last quarter. Point72 Asset Management L.P. bought a new stake in shares of Rowan Companies during the second quarter worth about $10,730,000. Finally, Renaissance Technologies LLC acquired a new position in shares of Rowan Companies in the second quarter worth approximately $9,743,000. Hedge funds and other institutional investors own 97.83% of the company’s stock.

Several equities analysts have recently weighed in on the stock. Tudor Pickering raised shares of Rowan Companies from a “hold” rating to a “buy” rating in a research note on Thursday, July 12th. BMO Capital Markets set a $15.00 target price on shares of Rowan Companies and gave the company a “hold” rating in a research note on Wednesday, July 11th. Royal Bank of Canada raised shares of Rowan Companies from a “sector perform” rating to an “outperform” rating in a research note on Thursday, September 20th. B. Riley set a $20.00 target price on shares of Rowan Companies and gave the company a “buy” rating in a research note on Friday, September 7th. Finally, BTIG Research began coverage on shares of Rowan Companies in a research note on Monday, September 17th. They issued a “hold” rating for the company. One equities research analyst has rated the stock with a sell rating, ten have given a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company. The stock currently has an average rating of “Buy” and a consensus target price of $15.68.

About Rowan Companies

Rowan Companies plc provides offshore oil and gas contract drilling services to the oil and gas industry. The company operates through Deepwater, Jack-ups, and ARO segments. The Deepwater segment operates 4 ultra-deepwater drillships. The Jack-ups segment operates 23 self-elevating jack-up rigs. The ARO segment operates 5 self-elevating jack-up rigs.

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