Seadrill Ltd. (SDRL) Shares Rise Despite Market Challenges

The stock of Seadrill Ltd. (NYSE: SDRL) has increased by 4.00 when compared to last closing price of 51.29. Despite this, the company has experienced a 7.61% gain in its stock price over the last five trading sessions. Seeking Alpha reported 2024-03-26 that Leading offshore driller Seadrill reported fourth quarter and full-year 2023 results in line with management’s projections. While the company generated $92 million in free cash flow, margins were impacted by a material increase in operating expenses. Seadrill authorized a new $250 million share buyback program and expects a year of transition in 2024 with elevated out-of-service time and reduced profitability.

Is It Worth Investing in Seadrill Ltd. (NYSE: SDRL) Right Now?

The price-to-earnings ratio for Seadrill Ltd. (NYSE: SDRL) is above average at 13.29x. There are mixed opinions on the stock, with 1 analysts rating it as a “buy,” 0 rating it as “overweight,” 0 rating it as “hold,” and 1 rating it as “sell.”

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The public float for SDRL is 71.08M, and at present, short sellers hold a 6.28% of that float. The average trading volume of SDRL on April 04, 2024 was 730.26K shares.

SDRL’s Market Performance

SDRL’s stock has seen a 7.61% increase for the week, with a 19.65% rise in the past month and a 13.13% gain in the past quarter. The volatility ratio for the week is 2.41%, and the volatility levels for the past 30 days are at 2.10% for Seadrill Ltd. The simple moving average for the past 20 days is 9.81% for SDRL’s stock, with a 19.82% simple moving average for the past 200 days.

Analysts’ Opinion of SDRL

Many brokerage firms have already submitted their reports for SDRL stocks, with Stifel repeating the rating for SDRL by listing it as a “Buy.” The predicted price for SDRL in the upcoming period, according to Stifel is $72 based on the research report published on December 06, 2023 of the previous year 2023.

Citigroup, on the other hand, stated in their research note that they expect to see SDRL reach a price target of $48.10. The rating they have provided for SDRL stocks is “Neutral” according to the report published on July 05th, 2023.

BTIG Research gave a rating of “Buy” to SDRL, setting the target price at $50 in the report published on March 17th of the previous year.

SDRL Trading at 16.97% from the 50-Day Moving Average

After a stumble in the market that brought SDRL to its low price for the period of the last 52 weeks, the company was able to rebound, for now settling with 3.98% of gains for the given period.

Volatility was left at 2.10%, however, over the last 30 days, the volatility rate increased by 2.41%, as shares surge +20.87% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +16.36% upper at present.

During the last 5 trading sessions, SDRL rose by +7.61%, which changed the moving average for the period of 200-days by +41.94% in comparison to the 20-day moving average, which settled at $49.03. In addition, Seadrill Ltd. saw 12.82% in overturn over a single year, with a tendency to cut further gains.

Stock Fundamentals for SDRL

Current profitability levels for the company are sitting at:

  • 0.23 for the present operating margin
  • 0.32 for the gross margin

The net margin for Seadrill Ltd. stands at 0.2. The total capital return value is set at 0.09. Equity return is now at value 12.81, with 8.55 for asset returns.

Based on Seadrill Ltd. (SDRL), the company’s capital structure generated 0.17 points at debt to capital in total, while cash flow to debt ratio is standing at 0.49. The debt to equity ratio resting at 0.2. The interest coverage ratio of the stock is 24.9.

Currently, EBITDA for the company is 512.65 million with net debt to EBITDA at -0.23. When we switch over and look at the enterprise to sales, we see a ratio of 2.56. The receivables turnover for the company is 5.05for trailing twelve months and the total asset turnover is 0.36. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.87.

Conclusion

In summary, Seadrill Ltd. (SDRL) has had a better performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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