Is Borr Drilling Limited (BORR) A Risky Investment?

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Borr Drilling Limited (NYSE:BORR) traded with an addition of $0.22 to close at $5.15 on Friday, an upside of 4.46 percent. An average of 668,342 shares of common stock have been traded in the last five days. There was a gain of $0.55 in the past week, and it reached a new high 19 times over the past 12 months. The last 20 days have seen an average of 885,045 shares traded, while the 50-day average volume stands at 1,133,882.

BORR stock has increased by 10.79% in the last month. The company shares reached their 1-month lowest point of $4.03 on 12/19/22. With the stock rallying to its 52-week high on 06/02/22, shares of the company touched a low of $1.75 and a high of $6.96 in 52 weeks. It has reached a new high 18 times so far this year and achieved 139.32% or $3.09 in price. In spite of this, the price is down -26.01% from the 52-week high.


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Financial Health

Borr Drilling Limited’s EBITDA margin for the year ending September 29 is 12.27%. Its gross profit as reported stood at -$88.3 million compared to revenue of $245.3 million.

Earnings Surprise

For the three-month period that ended September 29, Borr Drilling Limited had $1.92 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$193.0 million in the quarter, while revenues were shrunk -64.56%. The analyst consensus anticipated Borr Drilling Limited’s latest quarter earnings to come in at -$0.23 per share, but it turned out to be -$0.3, a -30.40% surprise. For the quarter, EBITDA amounted to $48.5 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Borr Drilling Limited (BORR) price momentum. RSI 9-day as of the close on 29 December was 65.45%, suggesting the stock is Neutral, with historical volatility in this time frame at 66.95%.

As of today, BORR’s price is $4.95 +11.96% or $0.55 from its 5-day moving average. BORR is currently trading +10.28% higher than its 20-day SMA and +36.60% higher than its 100-day SMA. However, the stock’s current price level is +41.10% above the SMA50 and +73.99% above the SMA200.

The stochastic %K and %D were 76.89% and 82.59%, respectively, and the average true range (ATR) was 0.32. With the 14-day stochastic at 74.26% and the average true range at 0.31, the RSI (14) stands at 61.06%. The stock has reached 0.21 on the 9-day MACD Oscillator while the 14-day reading was at 0.33.

Analyst Ratings

The consensus rating for Borr Drilling Limited (BORR) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell BORR, while 2 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 5 others rate it as a “buy”.

What is BORR’s price target for the next 12 months?

Analysts predict a range of price targets between $5.62 and $8.00, with a median target of $6.30. Taking a look at these predictions, the average price target given by analysts for Borr Drilling Limited (BORR) stock is $6.42.

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