Diamond Offshore Drilling, Inc. (NYSE:DO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Friday.

According to Zacks, “Diamond Offshore is a leading offshore contract driller with services across the world. The company boasts solid fundamentals with significant free cash flow potential and a clean balance sheet. Most importantly, 94% of the rig days during 2017 for the company’s ultra-deepwater units are being booked by top-tier global customers, which is likely to fetch with steady cashflows. Effective cost-control initiatives and improving rig efficiencies also added to the positives. However, the introduction of new and more stringent regulations following the Gulf of Mexico oil spill has made many projects less profitable. Also, over the past year, the company lost 14.3% value, following the trend of industry’s 25.4% decline.”

A number of other equities research analysts have also recently commented on the company. Clarkson Capital raised Diamond Offshore Drilling from a “neutral” rating to a “buy” rating in a research note on Friday, September 1st. Cowen and Company reissued a “hold” rating and issued a $11.00 price objective on shares of Diamond Offshore Drilling in a research note on Tuesday, September 5th. Bank of America Corporation cut Diamond Offshore Drilling from a “buy” rating to a “neutral” rating and reduced their price objective for the company from $22.00 to $12.00 in a research note on Friday, June 30th. Jefferies Group LLC restated a “hold” rating and issued a $12.00 target price (down previously from $14.00) on shares of Diamond Offshore Drilling in a report on Tuesday, July 18th. Finally, BidaskClub upgraded Diamond Offshore Drilling from a “strong sell” rating to a “sell” rating in a report on Friday, June 30th. Nine analysts have rated the stock with a sell rating, fourteen have given a hold rating and five have given a buy rating to the company. The stock presently has an average rating of “Hold” and an average price target of $14.60.

Shares of Diamond Offshore Drilling (DO) opened at 15.28 on Friday. The firm has a 50-day moving average price of $14.08 and a 200 day moving average price of $12.88. Diamond Offshore Drilling has a 1-year low of $10.06 and a 1-year high of $22.65. The company has a market cap of $2.10 billion, a PE ratio of 12.42 and a beta of 1.19.

Diamond Offshore Drilling (NYSE:DO) last announced its quarterly earnings data on Monday, July 31st. The offshore drilling services provider reported $0.45 EPS for the quarter, beating the Zacks’ consensus estimate of $0.24 by $0.21. Diamond Offshore Drilling had a return on equity of 5.77% and a net margin of 11.19%. The firm had revenue of $399.30 million during the quarter, compared to analysts’ expectations of $381.50 million. During the same quarter last year, the firm posted $0.16 earnings per share. The company’s revenue for the quarter was up 2.7% compared to the same quarter last year. On average, equities analysts anticipate that Diamond Offshore Drilling will post $0.91 earnings per share for the current year.

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Hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. grew its position in Diamond Offshore Drilling by 22.0% during the second quarter. BlackRock Inc. now owns 9,209,573 shares of the offshore drilling services provider’s stock worth $99,741,000 after buying an additional 1,658,687 shares in the last quarter. Contrarius Investment Management Ltd grew its position in Diamond Offshore Drilling by 99.0% during the second quarter. Contrarius Investment Management Ltd now owns 6,606,440 shares of the offshore drilling services provider’s stock worth $71,548,000 after buying an additional 3,286,580 shares in the last quarter. Equity Investment Corp Acquisition Inc grew its position in Diamond Offshore Drilling by 76.1% during the second quarter. Equity Investment Corp Acquisition Inc now owns 4,566,588 shares of the offshore drilling services provider’s stock worth $49,456,000 after buying an additional 1,973,653 shares in the last quarter. State Street Corp grew its position in Diamond Offshore Drilling by 27.3% during the second quarter. State Street Corp now owns 3,021,468 shares of the offshore drilling services provider’s stock worth $32,721,000 after buying an additional 648,077 shares in the last quarter. Finally, Pastel & Associes SA grew its position in Diamond Offshore Drilling by 168.2% during the second quarter. Pastel & Associes SA now owns 1,204,455 shares of the offshore drilling services provider’s stock worth $13,044,000 after buying an additional 755,335 shares in the last quarter.

About Diamond Offshore Drilling

Diamond Offshore Drilling, Inc provides contract drilling services to the energy industry. As of December 31, 2016, the Company had a fleet of 24 offshore drilling rigs. As of December 31, 2016, its fleet consisted of four drillships, 19 semisubmersible rigs and one jack-up rig. Its fleet enables it to offer a range of services, primarily in the floater market, including ultra-deepwater, deepwater and mid-water.

Analyst Recommendations for Diamond Offshore Drilling (NYSE:DO)

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