Traders Purchase Large Volume of Put Options on Diamond Offshore Drilling (NYSE:DO)

Diamond Offshore Drilling Inc (NYSE:DO) was the target of some unusual options trading on Tuesday. Traders acquired 7,324 put options on the company. This represents an increase of approximately 2,563% compared to the average volume of 275 put options.

DO opened at $9.32 on Thursday. The firm has a market cap of $1.24 billion, a price-to-earnings ratio of -7.97 and a beta of 1.69. Diamond Offshore Drilling has a 52-week low of $7.12 and a 52-week high of $20.96. The company has a current ratio of 2.68, a quick ratio of 2.68 and a debt-to-equity ratio of 0.56. The stock’s fifty day moving average is $8.34.

Diamond Offshore Drilling (NYSE:DO) last released its earnings results on Monday, April 29th. The offshore drilling services provider reported ($0.53) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.59) by $0.06. The company had revenue of $223.50 million for the quarter, compared to analyst estimates of $231.90 million. Diamond Offshore Drilling had a negative return on equity of 5.84% and a negative net margin of 26.72%. Diamond Offshore Drilling’s quarterly revenue was down 24.4% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.16) EPS. As a group, equities analysts anticipate that Diamond Offshore Drilling will post -2.43 EPS for the current year.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Advisor Group Inc. boosted its stake in Diamond Offshore Drilling by 108.3% in the fourth quarter. Advisor Group Inc. now owns 3,577 shares of the offshore drilling services provider’s stock valued at $35,000 after buying an additional 1,860 shares in the last quarter. PNC Financial Services Group Inc. boosted its stake in Diamond Offshore Drilling by 111.5% in the fourth quarter. PNC Financial Services Group Inc. now owns 4,681 shares of the offshore drilling services provider’s stock valued at $44,000 after buying an additional 2,468 shares in the last quarter. NumerixS Investment Technologies Inc acquired a new stake in Diamond Offshore Drilling in the fourth quarter valued at about $61,000. Bessemer Group Inc. bought a new position in Diamond Offshore Drilling in the fourth quarter valued at about $64,000. Finally, Energy Opportunities Capital Management LLC bought a new position in Diamond Offshore Drilling in the fourth quarter valued at about $116,000.

A number of research analysts have commented on the company. Piper Jaffray Companies decreased their price objective on Pure Storage from $25.00 to $20.00 and set an “overweight” rating on the stock in a report on Wednesday, May 22nd. SEB Equities raised Diamond Offshore Drilling from a “sell” rating to a “hold” rating and decreased their price objective for the company from $10.00 to $7.70 in a report on Tuesday, June 18th. Tudor Pickering raised Diamond Offshore Drilling from a “hold” rating to a “buy” rating in a report on Thursday, June 13th. Clarkson Capital lowered Diamond Offshore Drilling from a “buy” rating to a “neutral” rating in a report on Friday, April 12th. Finally, Citigroup decreased their price objective on Broadcom from $320.00 to $300.00 and set a “buy” rating on the stock in a report on Friday, June 14th. Eight research analysts have rated the stock with a sell rating, eight have issued a hold rating and eight have given a buy rating to the company. The stock presently has an average rating of “Hold” and an average price target of $13.92.

About Diamond Offshore Drilling

Diamond Offshore Drilling, Inc provides contract drilling services to the energy industry worldwide. The company operates a fleet of 17 offshore drilling rigs, including 4 drillships and 13 semisubmersible rigs. It serves independent oil and gas companies, and government-owned oil companies. The company was founded in 1953 and is headquartered in Houston, Texas.

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