Borr Drilling (NYSE:BORR) Shares Gap Down – Here’s Why

Borr Drilling Limited (NYSE:BORR) shares gapped down before the market opened on Monday. The stock had previously closed at $4.40, but opened at $3.96. Borr Drilling shares last traded at $3.9250, with a volume of 4,844,103 shares trading hands.

Wall Street Analyst Weigh In

BORR has been the subject of a number of research reports. Wall Street Zen cut Borr Drilling from a “sell” rating to a “strong sell” rating in a research report on Saturday, August 8th. SEB Equity Research set a $3.55 target price on Borr Drilling in a research report on Monday, August 17th. Zacks Research downgraded Borr Drilling from a “hold” rating to a “strong sell” rating in a research note on Tuesday, September 15th. Weiss Ratings lowered shares of Borr Drilling from a “sell (d+)” rating to a “sell (d)” rating in a research report on Monday. Finally, Capital One Financial set a $6.00 price objective on shares of Borr Drilling and gave the stock an “overweight” rating in a research note on Wednesday, July 1st. Two equities research analysts have rated the stock with a Strong Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $5.27.

Borr Drilling Stock Up 3.2%

The firm has a 50 day moving average price of $4.37 and a 200 day moving average price of $4.88.

Borr Drilling (NYSE:BORR) last released its earnings results on Wednesday, August 12th. The company reported ($0.79) earnings per share for the quarter, missing the consensus estimate of ($0.21) by ($0.58). The company had revenue of $232.30 million during the quarter, compared to the consensus estimate of $245.96 million. As a group, research analysts anticipate that Borr Drilling Limited will post -0.51 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, COO Harvey Snowling purchased 300,000 shares of the company’s stock in a transaction on Wednesday, October 14th. The stock was acquired at an average cost of $4.91 per share, for a total transaction of $1,473,000.00. Following the completion of the transaction, the chief operating officer directly owned 445,944 shares in the company, valued at $2,189,585.04. This trade represents a 205.56% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Jeffrey Currie acquired 125,000 shares of Borr Drilling stock in a transaction dated Thursday, August 13th. The stock was purchased at an average cost of $4.01 per share, with a total value of $501,250.00. Following the completion of the purchase, the director owned 479,423 shares of the company’s stock, valued at approximately $1,922,486.23. This represents a 35.27% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 7.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of BORR. Abel Hall LLC raised its holdings in Borr Drilling by 11.3% during the first quarter. Abel Hall LLC now owns 25,262 shares of the company’s stock valued at $146,000 after acquiring an additional 2,566 shares during the period. SG Americas Securities LLC boosted its stake in shares of Borr Drilling by 7.8% in the first quarter. SG Americas Securities LLC now owns 40,732 shares of the company’s stock worth $235,000 after acquiring an additional 2,963 shares during the period. AXQ Capital LP boosted its stake in shares of Borr Drilling by 2.6% in the second quarter. AXQ Capital LP now owns 124,639 shares of the company’s stock worth $515,000 after acquiring an additional 3,180 shares during the period. Optiver Holding B.V. boosted its stake in shares of Borr Drilling by 186.4% in the first quarter. Optiver Holding B.V. now owns 5,060 shares of the company’s stock worth $29,000 after acquiring an additional 3,293 shares during the period. Finally, Sterling Capital Management LLC grew its position in shares of Borr Drilling by 315.2% during the third quarter. Sterling Capital Management LLC now owns 7,324 shares of the company’s stock worth $28,000 after purchasing an additional 5,560 shares in the last quarter. Institutional investors own 83.12% of the company’s stock.

About Borr Drilling

Borr Drilling Limited (NYSE: BORR) is an offshore drilling contractor that provides well-drilling services to oil and gas exploration and production companies. The company primarily operates modern jack-up drilling rigs, which are designed to work in relatively shallow-water offshore environments.

Borr Drilling’s services include rig operations, well construction support and related offshore drilling activities. Its jack-up fleet is used for development drilling, exploration and workover projects, with contracts typically awarded by energy companies and other offshore operators.

Founded in 2016, Borr Drilling expanded through the acquisition of a large jack-up rig fleet from Transocean in 2017.