Zacks Investment Research downgraded shares of Rowan Companies (NYSE:RDC) from a buy rating to a hold rating in a report released on Friday, November 17th.
According to Zacks, “Rowan Companies offers investors stable earnings and cash flow visibility, given its technologically advanced and versatile offshore drilling fleet, strong backlog and considerable pricing power. Moreover, Rowan’s joint venture with Aramco is expected to drive higher utilizations for the drop-down rigs. Rowan’s cost-control initiatives are also noteworthy. The contract driller managed to lower direct operating expenses by almost 16% over the last nine months. Despite those positives, the new and more stringent regulations following the Gulf of Mexico oil spill has made deepwater drilling activity prohibitively expensive for exploration and production companies. Going forward, the volatile commodity pricing scenario, along with operational obstacles, could put pressure on the Rowan’s performance.”
A number of other equities analysts have also recently issued reports on RDC. UBS increased their price objective on shares of Rowan Companies from $15.00 to $18.00 and gave the company a buy rating in a research note on Monday, November 6th. B. Riley restated a buy rating on shares of Rowan Companies in a research note on Wednesday, November 1st. Jefferies Group reiterated a hold rating and set a $15.00 target price on shares of Rowan Companies in a research report on Friday, November 3rd. BMO Capital Markets set a $12.00 target price on shares of Rowan Companies and gave the stock a hold rating in a research report on Tuesday, October 17th. Finally, Deutsche Bank initiated coverage on shares of Rowan Companies in a research report on Tuesday, October 10th. They set a hold rating and a $15.00 target price for the company. Three equities research analysts have rated the stock with a sell rating, thirteen have given a hold rating and eight have given a buy rating to the company’s stock. The company has a consensus rating of Hold and a consensus target price of $16.52.
Rowan Companies (NYSE:RDC) last posted its quarterly earnings data on Wednesday, November 1st. The oil and gas company reported ($0.16) earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.42) by $0.26. The business had revenue of $291.60 million during the quarter, compared to the consensus estimate of $281.51 million. Rowan Companies had a negative net margin of 4.76% and a negative return on equity of 0.61%. Rowan Companies’s quarterly revenue was down 23.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.30 EPS. equities research analysts forecast that Rowan Companies will post -0.72 EPS for the current fiscal year.
A number of hedge funds have recently made changes to their positions in RDC. FMR LLC raised its holdings in shares of Rowan Companies by 12.1% in the first quarter. FMR LLC now owns 683,615 shares of the oil and gas company’s stock valued at $10,651,000 after purchasing an additional 73,851 shares during the last quarter. Morgan Stanley raised its holdings in shares of Rowan Companies by 40.6% in the first quarter. Morgan Stanley now owns 354,777 shares of the oil and gas company’s stock valued at $5,528,000 after purchasing an additional 102,393 shares during the last quarter. BlackRock Inc. raised its holdings in shares of Rowan Companies by 4,558.9% in the first quarter. BlackRock Inc. now owns 10,987,886 shares of the oil and gas company’s stock valued at $171,191,000 after purchasing an additional 10,752,038 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of Rowan Companies by 129.1% in the first quarter. Bank of America Corp DE now owns 197,144 shares of the oil and gas company’s stock valued at $3,071,000 after purchasing an additional 875,233 shares during the last quarter. Finally, Capstone Asset Management Co. raised its holdings in shares of Rowan Companies by 3.8% in the second quarter. Capstone Asset Management Co. now owns 21,078 shares of the oil and gas company’s stock valued at $216,000 after purchasing an additional 780 shares during 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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