Zacks Investment Research upgraded shares of Diamond Offshore Drilling (NYSE:DO) from a sell rating to a hold rating in a research report report published on Friday.

According to Zacks, “Diamond Offshore’s technologically advanced and versatile drilling fleet enables it to stay ahead of its peers in a market, where offshore rig demand is expected to surge through 2025. At the end of the second quarter of 2018, the company had a total contracted backlog of $2.2 billion, reflecting 23 rig years of work. This not only reflects steady demand from clients but also offers an unmatched level of earnings and cash flow visibility. The cost-control initiatives of Diamond Offshore are also promising. However, the companyis facing pressure on top line. While oil prices have improved over the last year, the company’s revenues have failed to register a positive change. In the trailing 12 months the company’s revenues fell 14.1%. It has also expressed concern relating to reduced EBITDA margin as customers try to seal the deal at the ongoing rates for future works. Therefore a cautious stance should be maintained on the stock.”

Several other analysts also recently commented on the company. Barclays raised their target price on Diamond Offshore Drilling from $13.00 to $14.00 and gave the company an underweight rating in a research note on Thursday, August 9th. TheStreet downgraded Diamond Offshore Drilling from a c- rating to a d+ rating in a research note on Monday, July 30th. Royal Bank of Canada restated a hold rating and issued a $23.00 target price on shares of Diamond Offshore Drilling in a research note on Tuesday, July 31st. B. Riley set a $17.00 target price on Diamond Offshore Drilling and gave the company a hold rating in a research note on Tuesday, July 31st. Finally, Credit Suisse Group raised their target price on Diamond Offshore Drilling from $14.00 to $15.00 and gave the company an underperform rating in a research note on Tuesday, July 31st. Nine research analysts have rated the stock with a sell rating, nine have given a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company’s stock. Diamond Offshore Drilling has an average rating of Hold and a consensus price target of $15.68.

Shares of DO opened at $17.58 on Friday. The company has a debt-to-equity ratio of 0.53, a current ratio of 4.23 and a quick ratio of 4.23. The stock has a market capitalization of $2.53 billion, a PE ratio of 21.44 and a beta of 1.15. Diamond Offshore Drilling has a one year low of $10.19 and a one year high of $21.92.

Diamond Offshore Drilling (NYSE:DO) last issued its earnings results on Monday, July 30th. The offshore drilling services provider reported ($0.33) EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.39) by $0.06. The company had revenue of $268.90 million during the quarter, compared to the consensus estimate of $279.83 million. Diamond Offshore Drilling had a negative return on equity of 1.06% and a negative net margin of 5.57%. The firm’s revenue for the quarter was down 32.7% compared to the same quarter last year. During the same period last year, the business posted $0.45 EPS. sell-side analysts forecast that Diamond Offshore Drilling will post -1.07 earnings per share for the current fiscal year.

In other Diamond Offshore Drilling news, SVP David L. Roland sold 1,744 shares of Diamond Offshore Drilling stock in a transaction dated Tuesday, July 31st. The stock was sold at an average price of $19.73, for a total transaction of $34,409.12. Following the completion of the transaction, the senior vice president now owns 9,194 shares in the company, valued at approximately $181,397.62. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.03% of the stock is currently owned by insiders.

A number of hedge funds have recently added to or reduced their stakes in DO. Guggenheim Capital LLC boosted its stake in shares of Diamond Offshore Drilling by 1.3% in the 1st quarter. Guggenheim Capital LLC now owns 215,139 shares of the offshore drilling services provider’s stock worth $3,153,000 after buying an additional 2,751 shares during the last quarter. Mutual of America Capital Management LLC boosted its stake in shares of Diamond Offshore Drilling by 5.6% in the 2nd quarter. Mutual of America Capital Management LLC now owns 55,655 shares of the offshore drilling services provider’s stock worth $1,161,000 after buying an additional 2,975 shares during the last quarter. Northwestern Mutual Investment Management Company LLC boosted its stake in shares of Diamond Offshore Drilling by 56.2% in the 1st quarter. Northwestern Mutual Investment Management Company LLC now owns 13,197 shares of the offshore drilling services provider’s stock worth $193,000 after buying an additional 4,750 shares during the last quarter. Russell Investments Group Ltd. purchased a new position in shares of Diamond Offshore Drilling in the 2nd quarter worth approximately $108,000. Finally, Envestnet Asset Management Inc. boosted its stake in shares of Diamond Offshore Drilling by 12.9% in the 4th quarter. Envestnet Asset Management Inc. now owns 46,126 shares of the offshore drilling services provider’s stock worth $857,000 after buying an additional 5,270 shares during the last quarter.

About Diamond Offshore Drilling

Diamond Offshore Drilling, Inc provides contract drilling services to the energy industry worldwide. It provides services in floater market, including ultra-deepwater, deepwater, and mid-water. The company operates a fleet of 17 offshore drilling rigs, which comprises 4 drillships, 7 ultra-deepwater, 4 deepwater, and 2 mid-water semisubmersibles.

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