McDermott International (NYSE:MDR) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Wednesday, July 25th. The firm presently has a $20.00 target price on the oil and gas company’s stock. Zacks Investment Research‘s target price indicates a potential downside of 1.53% from the company’s current price.
According to Zacks, “McDermott International's broad product portfolio, strong geographical footprint, good market position and its strong relationship with national oil companies provides a significant cushion against the downside risks inherent in its business. Despite the volatility in the commodity pricing environment, the company managed to comfortably beat the earnings expectations in the fourth quarter on the back of solid project execution. Further, McDermott's $6 billion impending merger deal with Chicago Bridge & Iron bode well as it will lead to a fully integrated onshore-offshore company, boosting its growth prospects and lead to cost efficiencies. Among other positives, McDermott's robust backlog reflects steady demand from the customers. Consequently, we think McDermott offers substantial upside potential from the current price levels and view it as a preferred energy equipment supplier to own now.”
MDR has been the subject of several other research reports. Citigroup reduced their price target on shares of McDermott International from $27.00 to $21.00 and set a “$17.66” rating for the company in a research report on Monday, July 23rd. Credit Suisse Group upped their price target on shares of McDermott International from $21.00 to $25.00 and gave the company a “neutral” rating in a research report on Thursday, May 24th. ValuEngine downgraded shares of McDermott International from a “hold” rating to a “sell” rating in a research report on Friday, June 22nd. Finally, KeyCorp reduced their price target on shares of McDermott International from $42.00 to $38.00 and set a “$17.66” rating for the company in a research report on Monday, July 23rd. Three equities research analysts have rated the stock with a sell rating, three have issued a hold rating and three have issued a buy rating to the stock. The company presently has an average rating of “Hold” and an average target price of $26.43.
McDermott International (NYSE:MDR) last released its quarterly earnings results on Tuesday, July 31st. The oil and gas company reported $0.29 EPS for the quarter, beating the consensus estimate of $0.22 by $0.07. McDermott International had a net margin of 5.04% and a return on equity of 10.38%. The firm had revenue of $1.74 billion during the quarter, compared to the consensus estimate of $1.98 billion. During the same quarter in the prior year, the firm earned $0.13 EPS. McDermott International’s revenue for the quarter was up 119.9% on a year-over-year basis. equities research analysts forecast that McDermott International will post 1.53 earnings per share for the current fiscal year.
In other McDermott International news, SVP Scott Munro sold 2,250 shares of the company’s stock in a transaction on Monday, July 16th. The shares were sold at an average price of $17.87, for a total transaction of $40,207.50. Following the completion of the transaction, the senior vice president now owns 35,270 shares in the company, valued at approximately $630,274.90. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 1.30% of the stock is currently owned by corporate insiders.
A number of institutional investors have recently made changes to their positions in the business. Hanson & Doremus Investment Management raised its position in McDermott International by 60.2% during the 2nd quarter. Hanson & Doremus Investment Management now owns 6,831 shares of the oil and gas company’s stock worth $134,000 after buying an additional 2,566 shares during the last quarter. Pitcairn Co. raised its position in McDermott International by 6.0% during the 1st quarter. Pitcairn Co. now owns 65,154 shares of the oil and gas company’s stock worth $397,000 after buying an additional 3,685 shares during the last quarter. PNC Financial Services Group Inc. raised its position in McDermott International by 27.7% during the 1st quarter. PNC Financial Services Group Inc. now owns 18,380 shares of the oil and gas company’s stock worth $112,000 after buying an additional 3,992 shares during the last quarter. Envestnet Asset Management Inc. purchased a new position in McDermott International during the 2nd quarter worth $117,000. Finally, Municipal Employees Retirement System of Michigan raised its position in McDermott International by 4.1% during the 1st quarter. Municipal Employees Retirement System of Michigan now owns 152,220 shares of the oil and gas company’s stock worth $927,000 after buying an additional 5,950 shares during the last quarter.
About McDermott International
McDermott International, Inc provides engineering, procurement, construction and installation, front-end engineering and design, and module fabrication services for upstream field developments. It operates through three segments: the Americas, Europe and Africa; the Middle East; and Asia. The company delivers fixed and floating production facilities, pipeline installations, and subsea systems from concept to commissioning for offshore and subsea oil and gas projects.
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