Rowan Companies (NYSE:RDC) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research downgraded shares of Rowan Companies (NYSE:RDC) from a buy rating to a hold rating in a research 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.”

RDC has been the topic of a number of other reports. UBS raised Rowan Companies from a neutral rating to a buy rating and boosted their price target for the stock from $11.00 to $15.00 in a research report on Monday, September 25th. BidaskClub raised Rowan Companies from a strong sell rating to a sell rating in a research report on Saturday, August 26th. B. Riley reissued a buy rating on shares of Rowan Companies in a research report on Wednesday, November 1st. FBR & Co restated a buy rating on shares of Rowan Companies in a report on Thursday, October 19th. Finally, Cowen set a $10.00 price objective on shares of Rowan Companies and gave the stock a hold rating in a report on Wednesday, October 18th. Three research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and eight have given a buy rating to the company. The company presently has an average rating of Hold and a consensus price target of $16.52.

Rowan Companies (RDC) traded down $0.36 during trading on Friday, reaching $14.76. The company’s stock had a trading volume of 2,669,751 shares, compared to its average volume of 3,410,004. The company has a current ratio of 5.80, a quick ratio of 5.80 and a debt-to-equity ratio of 0.47. Rowan Companies has a fifty-two week low of $9.02 and a fifty-two week high of $21.68.

Rowan Companies (NYSE:RDC) last issued its quarterly earnings results on Wednesday, November 1st. The oil and gas company reported ($0.16) EPS for the quarter, topping analysts’ consensus estimates of ($0.42) by $0.26. Rowan Companies had a negative return on equity of 0.61% and a negative net margin of 4.76%. The firm had revenue of $291.60 million for the quarter, compared to analysts’ expectations of $281.51 million. During the same period in the previous year, the firm posted $0.30 EPS. The business’s revenue for the quarter was down 23.1% compared to the same quarter last year. analysts forecast that Rowan Companies will post -0.72 earnings per share for the current year.

Institutional investors and hedge funds have recently made changes to their positions in the business. FMR LLC raised its stake in Rowan Companies by 140.0% during the 2nd quarter. FMR LLC now owns 1,640,662 shares of the oil and gas company’s stock valued at $16,800,000 after buying an additional 957,047 shares during the last quarter. Rhumbline Advisers increased its stake in shares of Rowan Companies by 26.7% in the 2nd quarter. Rhumbline Advisers now owns 285,312 shares of the oil and gas company’s stock worth $2,922,000 after purchasing an additional 60,193 shares in the last quarter. Sterling Capital Management LLC purchased a new stake in shares of Rowan Companies in the 2nd quarter worth $922,000. Robeco Institutional Asset Management B.V. increased its stake in shares of Rowan Companies by 21.6% in the 2nd quarter. Robeco Institutional Asset Management B.V. now owns 1,051,500 shares of the oil and gas company’s stock worth $10,768,000 after purchasing an additional 186,754 shares in the last quarter. Finally, Cipher Capital LP increased its stake in shares of Rowan Companies by 354.2% in the 2nd quarter. Cipher Capital LP now owns 135,249 shares of the oil and gas company’s stock worth $1,385,000 after purchasing an additional 105,474 shares in the last quarter.

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About Rowan Companies

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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