Rowan Companies (RDC) Upgraded to “Hold” by Zacks Investment Research

Rowan Companies (NYSE:RDC) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Wednesday.

According to Zacks, “Rowan Companies offers investors stable earnings and cash flow visibility, given its technologically advanced and versatile offshore drilling fleet as well as high-spec jack-ups, strong backlog of $634.9 and considerable pricing power. Rowan's joint venture with Aramco is expected to drive higher utilizations for the drop-down rigs. Rowan received various contracts that strengthen Rowan’s fleet and continues to add to its backlog amid the commodity price volatility. On Feb 21, Rowan and Ensco reached an agreement to merge in an all stock deal. The merger will create a leading offshore driller based on the fleet size, geographic presence and customer base. Rowan’s fourth-quarter 2018 total revenues beat the Zacks Consensus Estimate, mainly due to restart of operations of some rigs. However, loss was wider than expected due to increased expenses. Reducing average dayrates of jackup and deepwater rigs continues to hurt Rowan.”

Other equities research analysts have also issued research reports about the company. ValuEngine lowered Rowan Companies from a “buy” rating to a “hold” rating in a research report on Friday, December 21st. Barclays set a $13.00 target price on Rowan Companies and gave the stock a “sell” rating in a research report on Wednesday, February 20th. Credit Suisse Group lowered Rowan Companies from an “outperform” rating to a “neutral” rating and cut their target price for the stock from $20.00 to $10.00 in a research report on Wednesday, December 19th. HSBC raised Rowan Companies from a “hold” rating to a “buy” rating and set a $11.37 target price on the stock in a research report on Friday, March 8th. Finally, TheStreet lowered Rowan Companies from a “c-” rating to a “d+” rating in a research report on Friday, November 30th. One analyst has rated the stock with a sell rating, ten have given a hold rating and nine have issued a buy rating to the company. Rowan Companies has an average rating of “Hold” and a consensus price target of $14.24.



Shares of RDC opened at $11.65 on Wednesday. The company has a debt-to-equity ratio of 0.46, a current ratio of 2.87 and a quick ratio of 2.87. The stock has a market capitalization of $1.47 billion, a PE ratio of -3.13 and a beta of 2.53. Rowan Companies has a 1 year low of $7.77 and a 1 year high of $20.87.

Rowan Companies (NYSE:RDC) last issued its earnings results on Wednesday, February 27th. The oil and gas company reported ($1.11) earnings per share for the quarter, missing the consensus estimate of ($1.07) by ($0.04). Rowan Companies had a negative return on equity of 9.19% and a negative net margin of 42.12%. The business had revenue of $179.40 million for the quarter, compared to analyst estimates of $166.30 million. During the same period last year, the business posted ($0.31) EPS. Rowan Companies’s revenue was down 39.5% on a year-over-year basis. As a group, sell-side analysts expect that Rowan Companies will post -3.61 EPS for the current year.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Arizona State Retirement System increased its position in Rowan Companies by 1.1% during the fourth quarter. Arizona State Retirement System now owns 91,202 shares of the oil and gas company’s stock worth $765,000 after buying an additional 987 shares during the period. Bank of Montreal Can increased its position in Rowan Companies by 2.6% during the fourth quarter. Bank of Montreal Can now owns 73,752 shares of the oil and gas company’s stock worth $619,000 after buying an additional 1,864 shares during the period. Thrivent Financial for Lutherans increased its position in Rowan Companies by 6.3% during the fourth quarter. Thrivent Financial for Lutherans now owns 32,299 shares of the oil and gas company’s stock worth $271,000 after buying an additional 1,920 shares during the period. United Services Automobile Association increased its position in Rowan Companies by 9.0% during the fourth quarter. United Services Automobile Association now owns 29,311 shares of the oil and gas company’s stock worth $246,000 after buying an additional 2,427 shares during the period. Finally, Nikko Asset Management Americas Inc. increased its position in Rowan Companies by 1.8% during the fourth quarter. Nikko Asset Management Americas Inc. now owns 166,862 shares of the oil and gas company’s stock worth $1,400,000 after buying an additional 2,968 shares during the period. 98.85% of the stock is currently owned by institutional investors.

About Rowan Companies

Rowan Companies plc provides offshore oil and gas contract drilling services to the oil and gas industry. The company operates through Deepwater, Jack-ups, and ARO segments. The Deepwater segment operates 4 ultra-deepwater drillships. The Jack-ups segment operates 23 self-elevating jack-up rigs. The ARO segment operates 5 self-elevating jack-up rigs.

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