Valaris (NYSE:VAL) Shares Gap Up After Earnings Beat

Valaris Limited (NYSE:VAL - Get Free Report)'s stock price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $42.82, but opened at $46.00. Valaris shares last traded at $44.25, with a volume of 592,465 shares changing hands.

The company reported $1.88 earnings per share for the quarter, beating the consensus estimate of $1.20 by $0.68. The business had revenue of $584.40 million for the quarter, compared to the consensus estimate of $578.01 million. Valaris had a net margin of 15.81% and a return on equity of 17.40%.

Wall Street Analyst Weigh In

Several analysts have recently commented on the company. Susquehanna reduced their price target on Valaris from $50.00 to $47.00 and set a "neutral" rating for the company in a report on Friday. Barclays reissued an "equal weight" rating and issued a $49.00 target price (down previously from $59.00) on shares of Valaris in a report on Wednesday, December 18th. JPMorgan Chase & Co. began coverage on shares of Valaris in a research note on Friday, December 6th. They set an "underweight" rating and a $40.00 price target on the stock. StockNews.com upgraded shares of Valaris to a "sell" rating in a research note on Thursday. Finally, Citigroup upped their target price on shares of Valaris from $47.00 to $48.00 and gave the stock a "neutral" rating in a research report on Thursday, January 30th. Two equities research analysts have rated the stock with a sell rating and six have issued a hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $55.50.

Hedge Funds Weigh In On Valaris

Several hedge funds have recently added to or reduced their stakes in the business. Quarry LP acquired a new stake in shares of Valaris in the third quarter valued at approximately $25,000. Sterling Capital Management LLC lifted its stake in Valaris by 518.3% in the 4th quarter. Sterling Capital Management LLC now owns 742 shares of the company's stock valued at $33,000 after buying an additional 622 shares in the last quarter. Signaturefd LLC grew its holdings in Valaris by 395.0% during the 4th quarter. Signaturefd LLC now owns 1,475 shares of the company's stock valued at $65,000 after buying an additional 1,177 shares during the last quarter. Blue Trust Inc. increased its position in Valaris by 41.0% during the fourth quarter. Blue Trust Inc. now owns 1,758 shares of the company's stock worth $78,000 after buying an additional 511 shares in the last quarter. Finally, Quadrant Capital Group LLC raised its holdings in shares of Valaris by 326.9% in the fourth quarter. Quadrant Capital Group LLC now owns 1,874 shares of the company's stock worth $83,000 after acquiring an additional 1,435 shares during the last quarter. 96.74% of the stock is currently owned by hedge funds and other institutional investors.

Valaris Stock Performance

The company has a quick ratio of 1.61, a current ratio of 1.59 and a debt-to-equity ratio of 0.48. The company has a market capitalization of $2.91 billion, a price-to-earnings ratio of 7.95 and a beta of 1.10. The stock has a fifty day moving average price of $45.42 and a two-hundred day moving average price of $50.53.

About Valaris

Valaris Limited, together with its subsidiaries, provides offshore contract drilling services Gulf of Mexico, South America, North Sea, the Middle East, Africa, and the Asia Pacific. The company operates through four segments: Floaters, Jackups, ARO, and Other. It owns an offshore drilling rig fleet, which include drillships, dynamically positioned semisubmersible rigs, moored semisubmersible rig, and jackup rigs.