Rignet Receives a New Rating from Top Analyst

By Carrie Williams

Oppenheimer analyst Timothy Horan reiterated a Hold rating on Rignet (NASDAQ: RNET) today. The company’s shares closed yesterday at $17.65.

Horan noted:

“RNET posted 4Q16 revenue of $52.8M, above our $47M estimate and a 4.2% seq. increase due to timing of revenue in its System Integration/Automation business (~10% of revenue)/$2.3M in equipment sales. Positively, its managed services business was generally flat despite the loss of 19 additional off-shore rigs (second highest since the downturn) and 27 total sites. However, RNET has been notified that an additional 14 off-shore rigs it currently services will be cold stacked/scrapped. There were a lot of moving parts in the quarter with timing of revenue recognition/ equipment sales, and we look for evidence of business trends on the call.”

According to TipRanks.com, Horan is a top 100 analyst with an average return of 10.8% and a 72.3% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Riverbed Technology.

Rignet has an analyst consensus of Hold.

Based on Rignet’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $50.61 million and GAAP net loss of $1.66 million. In comparison, last year the company earned revenue of $52.19 million and had a GAAP net loss of $11.04 million.

Based on the recent corporate insider activity of 8 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 RNET in relation to earlier this year. Most recently, in December 2016, Charles Louis Davis, a Director at RNET sold 3,500 shares for a total of $77,700.

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RigNet, Inc. provides digital technology solutions to the oil and gas industry, focusing on offshore and onshore drilling rigs, energy production facilities, and energy maritime. The company also provides solutions ranging from fully-managed voice and data networks to more advanced applications. It provides services through a controlled and managed Internet protocol & multiprotocol label switching global network delivers voice, data, video and other services under a multi-tenant revenue model. The company operates its business through three segments: Eastern Hemisphere, Western Hemisphere and Telecoms Systems Integration. The Eastern Hemisphere segment provides remote communications services for offshore and onshore drilling rigs and production facilities, as well as, energy support vessels and other remote sites. The Western Hemisphere segment provides remote communications services for offshore and onshore drilling rigs and production facilities, as well as, energy support vessels and other remote sites. The Telecoms Systems Integration segment designs, assembles, installs and commissions turn-key solutions for customer telecommunications systems. RigNet was founded by Omar Kulbrandstad in 2000 and is headquartered in Houston, TX.