Zacks Investment Research downgraded shares of Rowan Companies (NYSE:RDC) from a hold rating to a sell rating in a report published on Wednesday.
According to Zacks, “Rowan is facing pressure on topline. Since 2016, total annual revenues have declined at a CAGR of nearly 30.4%. The trend continues through 2018, wherein the revenues have decreased by over 26% till date. Moreover, the company’s operating costs are also on the rise, which can hurt its bottom-line. Additionally, decreasing average dayrates and utilization of jackup and deepwater rigs continues to hurt Rowan. In the last reported quarter, the average dayrates of jackup and deepwater rigs plummeted nearly 25.6%, while average utilization of the company's rigs was 66% compared with 74% in the comparable quarter last year. This has also affected the company’s free cash flow. Given these headwinds, the company seems like a risky bet that ordinary investors should exit.”
A number of other analysts also recently commented on RDC. DNB Markets downgraded shares of Rowan Companies from a buy rating to a hold rating in a research report on Tuesday, October 30th. TheStreet downgraded shares of Rowan Companies from a c- rating to a d+ rating in a research report on Friday, November 30th. ValuEngine downgraded shares of Rowan Companies from a strong-buy rating to a buy rating in a report on Thursday, December 13th. Credit Suisse Group downgraded shares of Rowan Companies from an outperform rating to a neutral rating and dropped their target price for the stock from $20.00 to $10.00 in a report on Wednesday, December 19th. Finally, Societe Generale downgraded shares of Rowan Companies from a buy rating to a hold rating in a report on Thursday, December 20th. Two research analysts have rated the stock with a sell rating, ten have given a hold rating and eight have given a buy rating to the company. Rowan Companies currently has an average rating of Hold and a consensus target price of $14.80.
Shares of RDC stock traded up $0.28 during midday trading on Wednesday, reaching $11.59. 1,412,069 shares of the company were exchanged, compared to its average volume of 1,625,933. Rowan Companies has a 12 month low of $7.77 and a 12 month high of $20.87. The company has a market capitalization of $1.55 billion, a price-to-earnings ratio of -3.12 and a beta of 2.56. The company has a current ratio of 2.97, a quick ratio of 2.97 and a debt-to-equity ratio of 0.45.
Rowan Companies (NYSE:RDC) last released its quarterly earnings results on Wednesday, February 27th. The oil and gas company reported ($1.11) EPS for the quarter, missing analysts’ consensus estimates of ($1.07) by ($0.04). Rowan Companies had a negative return on equity of 7.11% and a negative net margin of 23.47%. The company had revenue of $179.40 million for the quarter, compared to the consensus estimate of $166.30 million. During the same quarter last year, the firm posted ($0.31) earnings per share. The firm’s quarterly revenue was down 39.5% compared to the same quarter last year. On average, equities research analysts predict that Rowan Companies will post -3.64 earnings per share for the current year.
Several institutional investors have recently added to or reduced their stakes in RDC. Canyon Capital Advisors LLC purchased a new position in shares of Rowan Companies in the third quarter worth approximately $93,218,000. Franklin Resources Inc. increased its position in shares of Rowan Companies by 165.2% in the third quarter. Franklin Resources Inc. now owns 2,620,563 shares of the oil and gas company’s stock worth $49,345,000 after acquiring an additional 1,632,357 shares in the last quarter. Oaktree Capital Management LP purchased a new position in shares of Rowan Companies in the fourth quarter worth approximately $11,697,000. Van ECK Associates Corp increased its position in shares of Rowan Companies by 67.9% in the fourth quarter. Van ECK Associates Corp now owns 2,510,531 shares of the oil and gas company’s stock worth $21,063,000 after acquiring an additional 1,015,561 shares in the last quarter. Finally, Centerbridge Partners L.P. increased its position in shares of Rowan Companies by 22.8% in the fourth quarter. Centerbridge Partners L.P. now owns 5,110,000 shares of the oil and gas company’s stock worth $42,873,000 after acquiring an additional 950,000 shares in the last quarter. 98.89% of the stock is currently owned by institutional investors and hedge funds.
Rowan Companies Company Profile
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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