On December 03, 2019, Diamond Offshore Drilling, Inc. (NYSE:DO) shares lost -5% or -0.28 points to close at $5.32 with a heavy trading volume of 3.557 million shares. It opened the trading session at $5.44, the shares rose to $5.63 and dropped to $5.31, the range by which the price of stock traded the whole day. The company now has a market cap of $756 million and currently has 142.09 million outstanding shares. Diamond Offshore Drilling, Inc. (DO) stock has plunged -9.83 percent of market value in 21 trading days.
DO stock’s trailing 3-year beta is 1.8, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$2.78 share in the trailing 52 weeks. The stock’s value fallen -43.64 percent year to date (YTD) compared to a decline of -57.78 percent in 52 week’s period. The firm’s shares are still trading -59.76 percent below its 1-year high of $13.22 and 11.53 percent up from 52-week low of $4.77. The average consensus ranking on the company is 3.1, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a hold.
Diamond Offshore Drilling, Inc. (DO) is most likely going to rise 26.88 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $9-month high price target. This represents a whopping 69.17 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $5.5, which means a return possibility of 3.38 percent in comparison with the closing price of the stock of $5.32 on December 03. The lowest price set for the stock is $4 — just above -24.81 percent from DO share price now.
Past records have indicated that shares in Diamond Offshore Drilling, Inc. rose on 21 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of DO’s Q4 earnings on February 10. Analysts are predicting revenue to climb 5.5 percent to $245M in the financial fourth quarter, while EPS will soar by about 59.52 percent to -$0.67 per share. In the last quarter, it earnings of -$0.99 per share came worse than the -$0.67719, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $232.52M, missing the $249.89M analysts had expected. Earnings are seen to rise by -276.3 percent this year, 26.3 percent in the coming year and the trend continues by -10.1 percent every year in the next 5 years.
Let’s take a glimpse at some insider activity at Diamond Offshore Drilling, Inc. (NYSE:DO) and observe the pattern. The earliest insider trade happened on 09/16/2019. Kornblau Scott Lee parted with a total of 5.82 thousand shares of the firm at average share price of $8.69. The total amount for the sale was set at $50.57 thousand. On completing this exchange, the Senior Vice President – CFO account balance was 0 thousand shares. The stock lost -38.78 percent from that insider sale. On 09/11/2019, Gaffney Paul G, Director, did a sale of 1 thousand shares at a price of $7.72 per share. This got rid of 7.72 thousand shares from the insider’s fortune and the stock experienced a -31.09 percent retreat in price since the news became public. This exchange saw 7 thousand shares get out from the Director account.
On 02/25/2019, Director Gaffney Paul G recorded a purchase transaction valued at $39.64 thousand. The purchase at $9.91 a share has added 4 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed -46.32 percent decrease since the transaction reporting date. The company insider is left with 3 thousand shares remaining in the account. Kornblau Scott Lee, who works as Senior Vice President – CFO at the company, performed a sale of 0.69 thousand shares in a transaction worth $13.88 thousand. The disposal recorded on 09/28/2018 was priced at $20.06 per share. The stock price plunged -73.48 percent since the transaction. Kornblau Scott Lee currently holds a stake of 2.6 thousand in DO stock which is worth $13.85 thousand after the insider selling.
The stock is lingering around the initial support level of $5.21. After this, the following support is at the zone of $5.1. Up until the time the DO stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 44.52 on the daily chart, and this may be a cause for concern. In case the price goes below $5.1 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $5.53 level may cause a pull-back move approaching $5.74 mark.
Diamond Offshore Drilling, Inc. has a 15.9% gross profit margin, with its operating margin around -28.9%. Alongside this, the company’s net profit margin currently stands at -38.6%.