A significant driver of top-line growth: Valaris Limited (VAL)

Valaris Limited (NYSE: VAL) stock jumped 2.61% on Thursday to $75.84 against a previous-day closing price of $73.91. With 0.87 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.91 million shares. During the session, the Oil & Gas Equipment & Services company that operates in wider Energy sector, reached to the highest price of $76.54 whereas the lowest price it dropped to was $74.64. The 52-week range on VAL shows that it touched its highest point at $80.00 and its lowest point at $46.54 during that stretch. It currently has a 1-year price target of $98.67. Beta for the stock currently stands at 1.30.

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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 VAL was up-trending over the past week, with a rise of 5.03%, but this was up by 3.52% over a month. Three-month performance surged to 30.40% while six-month performance rose 22.98%. The stock gained 31.28% in the past year, while it has gained 12.16% so far this year. A look at the trailing 12-month EPS for VAL yields 1.59 with Next year EPS estimates of 6.80. For the next quarter, that number is 0.32. This implies an EPS growth rate of 103.90% for this year and 457.38% for next year.

Float and Shares Shorts:

At present, 74.80 million VAL shares are outstanding with a float of 68.32 million shares on hand for trading. On Aug 14, 2023, short shares totaled 3.05 million, which was 4.13% higher than short shares on Jul 13, 2023. In addition to Mr. Anton Dibowitz as the firm’s Pres, CEO & Director, Mr. Christopher T. Weber serves as its Sr. VP & CFO.

Institutional Ownership:

Through their ownership of 91.16% of VAL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 50.81% of VAL, in contrast to 30.88% held by mutual funds. Shares owned by individuals account for 12.73%. As the largest shareholder in VAL with 8.37% of the stake, BlackRock Fund Advisors holds 6,293,730 shares worth 6,293,730. A second-largest stockholder of VAL, Orbis Investment Management Ltd., holds 5,076,252 shares, controlling over 6.75% of the firm’s shares. Oak Hill Advisors LP is the third largest shareholder in VAL, holding 4,794,033 shares or 6.38% stake. With a 2.57% stake in VAL, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 1,929,503 shares are owned by the mutual fund manager. The VanEck Oil Services ETF, which owns about 2.02% of VAL stock, is the second-largest Mutual Fund holder. It holds 1,517,955 shares valued at 116.58 million. iShares Russell 2000 ETF holds 1.85% of the stake in VAL, owning 1,393,894 shares worth 107.05 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, VAL reported revenue of $413.30M and operating income of $10.20M. The EBITDA in the recently reported quarter was $198.90M and diluted EPS was $1.48.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VAL since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With VAL analysts setting a high price target of $113.00 and a low target of $84.00, the average target price over the next 12 months is $100.18. Based on these targets, VAL could surge 49.0% to reach the target high and rise by 10.76% to reach the target low. Reaching the average price target will result in a growth of 32.09% 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.

Summary of Insider Activity:

Insiders traded VAL stock several times over the past three months with 1 Buys and 9 Sells. In these transactions, 5,865 shares were bought while 4,210,047 shares were sold. The number of buy transactions has increased to 16 while that of sell transactions has risen to 14 over the past year. The total number of shares bought during that period was 71,934 while 4,657,054 shares were sold.

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