Borr Drilling Ltd (NYSE: BORR)’s stock price has gone rise by 1.83 in comparison to its previous close of 6.29, however, the company has experienced a 7.83% increase in its stock price over the last five trading days. Seeking Alpha reported 2023-11-14 that Borr Drilling completed a successful refinancing, pushing most of its maturities out to 2028-2030. The rating agencies have turned positive on the improving industry fundamentals, suggesting the debt will be less of a concern going forward. The leverage should now start working for the equity investors as modest improvements in EBITDA or the valuation multiples will have a big impact on the share price.
Is It Worth Investing in Borr Drilling Ltd (NYSE: BORR) Right Now?
The 36-month beta value for BORR is also noteworthy at 2.89. There are mixed opinions on the stock, with 8 analysts rating it as a “buy,” 0 rating it as “overweight,” 1 rating it as “hold,” and 0 rating it as “sell.”
The average price estimated by analysts for BORR is $9.93, which is $3.51 above than the current price. The public float for BORR is 217.34M, and at present, short sellers hold a 4.25% of that float. The average trading volume of BORR on November 15, 2023 was 1.33M shares.
BORR’s Market Performance
BORR stock saw a decrease of 7.83% in the past week, with a monthly decline of -14.26% and a quarterly a decrease of -16.49%. The volatility ratio for the week is 3.15%, and the volatility levels for the last 30 days are 3.96% for Borr Drilling Ltd (BORR). The simple moving average for the past 20 days is 0.82% for BORR’s stock, with a -10.35% simple moving average for the past 200 days.
BORR Trading at -5.53% from the 50-Day Moving Average
After a stumble in the market that brought BORR to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -28.91% of loss for the given period.
Volatility was left at 3.96%, however, over the last 30 days, the volatility rate increased by 3.15%, as shares sank -10.28% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -7.16% lower at present.
During the last 5 trading sessions, BORR rose by +8.00%, which changed the moving average for the period of 200-days by +7.82% in comparison to the 20-day moving average, which settled at $6.32. In addition, Borr Drilling Ltd saw 28.87% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for BORR
Current profitability levels for the company are sitting at:
- +5.77 for the present operating margin
- +14.06 for the gross margin
The net margin for Borr Drilling Ltd stands at -65.98. The total capital return value is set at 0.99, while invested capital returns managed to touch -12.43. Equity return is now at value -10.24, with -2.77 for asset returns.
Based on Borr Drilling Ltd (BORR), the company’s capital structure generated 182.39 points at debt to equity in total, while total debt to capital is 64.59. Total debt to assets is 54.55, with long-term debt to equity ratio resting at 132.67. Finally, the long-term debt to capital ratio is 46.98.
When we switch over and look at the enterprise to sales, we see a ratio of 5.07, with the company’s debt to enterprise value settled at 0.66. The receivables turnover for the company is 3.04 and the total asset turnover is 0.15. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.42.
In summary, Borr Drilling Ltd (BORR) has had a mixed performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.