Zacks Investment Research upgraded shares of Diamond Offshore Drilling Inc. (NYSE:DO) from a sell rating to a hold rating in a research note released on Thursday.

According to Zacks, “Diamond Offshore Drilling boasts solid fundamentals with significant free cash flow potential and a clean balance sheet. Moreover, the company intends to increase its footprint in emerging markets (like Australia, Brazil and West Africa) to reap benefits from the recently discovered deepwater fields. This should work well for the company in the long term. Moreover, Diamond Offshore Drilling’s decision to discontinue dividends will lead to annual savings of $69 million and result in more efficient operations. However, near-term headwinds continue to weigh on it. The volatile oil and gas price scenario, geopolitical risks related to international operations, the uneven deepwater markets and expectations of a gradual decline in deepwater rates are concerns going forward.”

Other analysts have also issued reports about the company. Vetr lowered Diamond Offshore Drilling from a strong-buy rating to a buy rating and set a $27.54 target price on the stock. in a report on Monday, June 20th. Bank of America Corp. assumed coverage on Diamond Offshore Drilling in a report on Sunday, June 19th. They issued a buy rating and a $24.32 price objective on the stock. Zephirin Group raised Diamond Offshore Drilling from a hold rating to a buy rating and set a $22.00 price objective on the stock in a report on Monday, September 19th. Evercore ISI raised Diamond Offshore Drilling from a hold rating to a buy rating and dropped their price objective for the company from $22.00 to $19.00 in a report on Tuesday, September 20th. Finally, Jefferies Group reissued a hold rating on shares of Diamond Offshore Drilling in a report on Monday, July 11th. Six research analysts have rated the stock with a sell rating, seventeen have given a hold rating and six have issued a buy rating to the company. The company has an average rating of Hold and an average target price of $20.20.

Diamond Offshore Drilling (NYSE:DO) remained flat at $17.14 during mid-day trading on Thursday. 1,035,523 shares of the company’s stock were exchanged. The company’s market cap is $2.35 billion. Diamond Offshore Drilling has a 1-year low of $14.18 and a 1-year high of $26.72. The firm’s 50 day moving average is $16.72 and its 200 day moving average is $21.63.

Diamond Offshore Drilling (NYSE:DO) last posted its earnings results on Monday, August 1st. The offshore drilling services provider reported $0.16 EPS for the quarter, topping the consensus estimate of $0.08 by $0.08. The firm had revenue of $388.75 million for the quarter, compared to analyst estimates of $374.17 million. Diamond Offshore Drilling had a positive return on equity of 9.12% and a negative net margin of 30.20%. Diamond Offshore Drilling’s revenue for the quarter was down 38.7% compared to the same quarter last year. During the same period last year, the company earned $0.66 earnings per share. On average, analysts forecast that Diamond Offshore Drilling will post $1.01 EPS for the current year.

Institutional investors have recently bought and sold shares of the company. Balentine LLC increased its position in Diamond Offshore Drilling by 5.7% in the second quarter. Balentine LLC now owns 4,186 shares of the offshore drilling services provider’s stock worth $102,000 after buying an additional 226 shares during the period. Tower Research Capital LLC TRC increased its position in Diamond Offshore Drilling by 24,233.3% in the second quarter. Tower Research Capital LLC TRC now owns 5,840 shares of the offshore drilling services provider’s stock worth $142,000 after buying an additional 5,816 shares during the period. Pacer Advisors Inc. purchased a new position in Diamond Offshore Drilling during the second quarter worth approximately $155,000. Mason Street Advisors LLC purchased a new position in Diamond Offshore Drilling during the second quarter worth approximately $211,000. Finally, Societe Generale purchased a new position in Diamond Offshore Drilling during the second quarter worth approximately $214,000.

Diamond Offshore Drilling Company Profile

Diamond Offshore Drilling, Inc is engaged in offshore drilling and providing contract drilling services to the energy industry. The Company has a fleet of approximately 30 offshore drilling rigs, such as semisubmersibles, jack-ups and dynamically positioned (DP) drillships. Its fleet offers a range of services around the world in the floater market (ultra-deepwater, deepwater and mid-water).

5 Day Chart for NYSE:DO

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