Precision Drilling (NYSE:PDS) Hits 12-Month Low After Weak Earnings Report

On Thursday, Precision Drilling Co. (NYSE:PDS) faced a significant drop in its share price, reaching a new 52-week low during mid-day trading. The stock fell to a low of $53.31 before closing at $55.43, marking a notable decline from its previous close of $56.23. The trading volume during this period recorded 37,051 shares.

The downturn follows the company's disappointing earnings report, in which Precision Drilling announced earnings per share of $0.76 for the recent quarter. This figure fell short of analysts' expectations, which had estimated earnings of $1.40 per share, resulting in a miss of $0.64. Despite these earnings, the company maintained a net margin of 12.52% and a return on equity of 10.06%.

Analysts Downgrade Ratings

In light of the disappointing earnings, analysts have shifted their outlook on Precision Drilling's stock. Specifically, TD Securities downgraded the company from a "strong-buy" rating to a "hold" rating in a note issued on February 3rd.

Institutional Investment Activity

Recent activity among institutional investors has also impacted Precision Drilling shares. Several hedge funds have adjusted their holdings in the company. For instance, Russell Investments Group Ltd. increased its stake by an impressive 246.5% in the fourth quarter, now owning 6,373 shares valued at approximately $390,000 after adding 4,534 shares. Grantham Mayo Van Otterloo & Co. LLC raised its holdings by 190%, possessing 81,500 shares worth around $4.98 million after acquiring 53,400 shares. Moreover, Trexquant Investment LP grew its stake by 36%, while Geode Capital Management LLC increased its position by 6.1%. National Bank of Canada FI added to its holdings considerably, now owning 729,626 shares worth $44.67 million. Currently, institutional investors hold approximately 48.86% of Precision Drilling’s stock.

Company Financial Highlights

Precision Drilling's financial metrics show a debt-to-equity ratio of 0.47, a quick ratio of 1.41, and a current ratio of 1.54. The company's 50-day moving average price sits at $60.75, while the 200-day moving average price is $63.57. With a market capitalization of $767.26 million, Precision Drilling has a price-to-earnings ratio of 4.69 and a beta of 1.91.

About Precision Drilling

Precision Drilling Corporation is involved in the oil and gas industry, providing various drilling, completion, and production services to exploration and production companies. The company operates primarily in North America and the Middle East, with services divided into Contract Drilling Services and Completion and Production Services segments.

Looking Ahead

Given the recent stock performance and the analyst downgrades, investors will be watching Precision Drilling closely for any future developments that might affect share price recovery. As the energy market shifts, how the company adapts to changes in demand and pricing will be crucial for its performance.

Precision, Drilling, Earnings