Nomura Holdings Reiterates a Hold Rating on Rowan Companies

By Austin Angelo

In a report released today, Lloyd Byrne from Nomura Holdings reiterated a Hold rating on Rowan Companies (NYSE: RDC), with a price target of $14. The company’s shares opened today at $13.90.

According to TipRanks.com, Byrne is a 4-star analyst with an average return of 8.6% and a 62.0% success rate. Byrne covers the Basic Materials sector, focusing on stocks such as Diamond Offshore Drilling, Parker Drilling Company, and Whiting Petroleum Corp.

Currently, the analyst consensus on Rowan Companies is Hold and the average price target is $14, representing a 0.7% upside.

In a report issued on November 3, Societe Generale also upgraded the stock to Hold.

Based on Rowan Companies’ latest earnings report from June 30, the company posted quarterly revenue of $611.9M and quarterly net profit of $216.7M. In comparison, last year the company earned revenue of $545.4M and had a net profit of -$239.4M.

Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RDC in relation to earlier this year. Most recently, in May 2015, Tore Sandvold, a Director at RDC bought 5,000 shares for a total of $111,450.

Rowan Cos. Plc provides offshore contract drilling services to the international oil and gas industry. It focuses on high specification and premium jack-up rigs, which are used for exploratory and development drilling operations. The company operates through two segments: Deepwater, which consists of drillship operations, and Jack-Ups. Rowan was founded by Charles Rowan and Archibald Rowan in 1923 and is headquartered in Houston, TX.