A look into Diamond Offshore Drilling Inc. (DO)’s deeper side

Diamond Offshore Drilling Inc. (NYSE: DO) stock jumped 0.68% on Tuesday to $11.88 against a previous-day closing price of $11.80. With 0.57 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.99 million shares. During the session, the Oil & Gas Drilling company that operates in wider Energy sector, reached to the highest price of $11.90 whereas the lowest price it dropped to was $11.57. The 52-week range on DO shows that it touched its highest point at $12.09 and its lowest point at $5.17 during that stretch. It currently has a 1-year price target of $13.50.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DO was up-trending over the past week, with a rise of 0.93%, but this was up by 24.79% over a month. Three-month performance surged to 35.31% while six-month performance rose 102.04%. A look at the trailing 12-month EPS for DO yields -1.76 with Next year EPS estimates of 0.16. For the next quarter, that number is -0.35. This implies an EPS growth rate of -135.10% for this year and 114.20% for next year.

Float and Shares Shorts:

At present, 100.88 million DO shares are outstanding with a float of 100.28 million shares on hand for trading. On Oct 13, 2022, short shares totaled 5.5 million, which was 5.42% higher than short shares on Sep 14, 2022. In addition to Mr. Bernie G. Wolford as the firm’s Pres, CEO & Director, Mr. Dominic A. Savarino serves as its Sr. VP & CFO.


Institutional Ownership:

Through their ownership of 88.94% of DO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 61.25% of DO, in contrast to 23.59% held by mutual funds. Shares owned by individuals account for 0.73%. As the largest shareholder in DO with 8.85% of the stake, Contrarius Investment Management holds 8,983,909 shares worth 8,983,909. A second-largest stockholder of DO, Wellington Management Co. LLP, holds 7,924,706 shares, controlling over 7.81% of the firm’s shares. Samuel Terry Asset Management Pty is the third largest shareholder in DO, holding 7,786,885 shares or 7.67% stake. With a 2.91% stake in DO, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 2,948,976 shares are owned by the mutual fund manager. The American Funds Income Fund of Ame, which owns about 2.48% of DO stock, is the second-largest Mutual Fund holder. It holds 2,516,054 shares valued at 26.17 million. iShares Russell 2000 ETF holds 2.25% of the stake in DO, owning 2,281,543 shares worth 23.73 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DO since 2 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DO analysts setting a high price target of $17.00 and a low target of $17.00, the average target price over the next 12 months is $17.00. Based on these targets, DO could surge 43.1% to reach the target high and rise by 43.1% to reach the target low. Reaching the average price target will result in a growth of 43.1% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.. Analysts have provided yearly estimates in a range of -$0.77 being high and -$0.83 being low. For DO, this leads to a yearly average estimate of -$0.80. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Diamond Offshore Drilling Inc. surprised analysts by $0.26 when it reported $0.05 EPS against a consensus estimate of -$0.21. Based on analyst estimates, the high estimate for the next quarter is -$0.26 and the low estimate is -$0.27. The average estimate for the next quarter is thus -$0.27.

Summary of Insider Activity:

Insiders traded DO stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 253,560 shares were bought while 99,776 shares were sold. The number of buy transactions has increased to 6 while that of sell transactions has risen to 7 over the past year. The total number of shares bought during that period was 840,759 while 326,401 shares were sold.

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