Atwood Oceanics, Inc. (ATW) Stock Takes a Hit on Downgrade and Drillship Delivery Delay

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Atwood Oceanics, Inc. (NYSE:ATW) shares are in a freefall today after a couple tidbits of news. First, the company announced that their subsidiaries have reached an agreement with Daewoo Shipbuilding & Marine Engineering to allow for a delay in the company taking on the delivery of two newbuild drillships (The Atwood Admiral and Atwood Archer). The new dates that have been set are June 30, 2018 and September 30, 1017.

Additionally RBC Capital has now lowered their target price for shares of Atwood Oceanics, Inc. (NYSE:ATW) down to $14.00 from the previous target of $19.00.

The stock is down 11.11% or $1.35 following the news, hitting $10.8 per share. About 4.18 million shares traded hands or 10.88% up from the average. ATW has declined 63.79% since May 15, 2015 and is downtrending. It has underperformed the S&P500 by 61.52%.

From a total of 12 analysts covering Atwood Oceanics (NYSE:ATW) stock, 2 rate it a “Buy”, 0 a “Sell”, and 10 a “Hold”. This means that 17% of the ratings are positive. The highest target price is $39 while the lowest target price is $12.50. The mean of all analyst targets is $20.74 which is 92.04% above today’s ($10.8) stock price. Atwood Oceanics was the topic of 19 analyst reports since August 3, 2015 according to the firm StockzIntelligence Inc. KLR initiated shares on December 14 with a “Hold” rating. Macquarie Research maintained shares with a”Neutral” rating and a $16 target share price in their report from an October 2. Barclays Capital upgraded ATW stock in a recent report from December 4 to a “Equal-Weight” rating. Vetr downgraded the rating on September 1. Vetr has a “Buy” rating and a $17.64 price target on shares. Finally, RBC Capital Markets maintained the stock with a “Sector Perform” rating in a report they issued on a November 11.

The institutional sentiment decreased to 0.93 in Q2 2015. It’s down 0.30, from 1.23 in 2015Q2. The ratio fall, as 43 funds sold all their Atwood Oceanics, Inc. shares they owned while 89 reduced their positions. 27 funds bought stakes while 96 increased their total positions. Institutions now own 83.56 million shares which is 16.52% more than the previous share count of 71.71 million in 2015Q2.

Zpr Investment Management holds 3.24% of its total portfolio in Atwood Oceanics, Inc., equating to 179,427 shares. Key Group Holdings (Cayman) Ltd. owns 2.69 million shares representing 2.89% of their total US portfolio. Moreover, Van Den Berg Management I Inc has 2.28% of their total portfolio invested in the company, equating to 1.20 million shares. The New York-based Robotti Robert has a total of 1.26% of their portfolio invested in the stock. Breithorn Capital Management, a New York-based fund reported 102,460 shares owned.

Since September 8, 2015, the stock had 1 buy, and 0 insider sales for a total of $84,279 in net activity. Saltiel Robert J. bought 5,000 shares worth $84,279.

Atwood Oceanics, Inc. is a global offshore drilling contractor engaged in the drilling and completion of exploratory and developmental gas and oil wells. The company has a market cap of $815.96 million. The Firm has a fleet of approximately 13 mobile offshore drilling units located around the world. It has 1.62 P/E ratio. The Company’s fleet includes Ultra-Deepwater Rigs, Deepwater Semisubmersibles and Jackups.

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