B.Riley FBR analyst Tom Curran maintained a Hold rating on Dril-Quip (DRQ) today and set a price target of $51. The company’s shares closed last Monday at $54.15, close to its 52-week high of $56.32.
Curran noted:
“We are covering Dril-Quip’s (DRQ) (1) forge facilities transaction, (2) Ca Rong Do (CRD) project termination, and (3) new investor presentation. Last week, DRQ leased facilities/equipment at its Houston mfg’ing campus to AFGlobal with the option to purchase the assets. AFGlobal will assume all operational responsibility on Oct. 1. As a result of bolstered cost savings guidance affected from the deal, our 2020E EBITDA rises from $83.3M to $89.1M. Using our unchanged multiple of 16.0x on our new estimate, our price target is lifted from $48 to $51. after multiple delays, the contract award has officially been terminated. While CRD revenue was not included in 2019 guidance, the contract value was included in DRQ’s backlog. As of the end of 2Q19, pro forma backlog stood at $240M (previously $322M).”
According to TipRanks.com, Curran has currently no stars on a ranking scale of 0-5 stars, with an average return of -10.2% and a 37.5% success rate. Curran covers the Basic Materials sector, focusing on stocks such as Solaris Oilfield Infrastructure Inc, Independence Contract Drilling, and Select Energy Services Inc.
Dril-Quip has an analyst consensus of Moderate Sell, with a price target consensus of $47.33.
See today’s analyst top recommended stocks >>
The company has a one-year high of $56.32 and a one-year low of $26.62. Currently, Dril-Quip has an average volume of 335.7K.
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DRQ in relation to earlier this year. Most recently, in July 2019, Blake Deberry, the President & CEO of DRQ sold 10,000 shares for a total of $516,300.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Dril-Quip, Inc. designs, manufactures, sells and services engineered offshore drilling and production equipment that is well suited for use in deepwater, harsh environment and severe service applications. Its products consist of subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipe, drilling and production riser systems, liner hangers, wellhead connectors and diverters which are used by major integrated, large independent and foreign national oil and gas companies in offshore areas throughout the world. The company was founded by Larry E. Reimert, Gary W. Loveless, Gary D. Smith and J. Mike Walker in 1981 and is headquartered in Houston, TX.
