Ensco plc (ESV) Looking Forward To Another Wild Ride

Analysts at HSBC Securities upped their rating on shares of Ensco plc (NYSE:ESV) from Hold to Buy in their opinion released on March 08. Societe Generale analysts have downgraded their rating of ESV stock from Buy to Hold in a separate flash note to investors on December 20. Analysts at Johnson Rice issued an upgrade from Accumulate to Buy for the stock, in a research note that dated back to October 17.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Ensco plc (NYSE:ESV)’s prospects.

Ensco plc (ESV) is expected to jump by 55.71 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $10-month high price target. This represents a whopping 133.1 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $6, which represents a return potential of 39.86 percent when compared to the closing price of the stock of $4.29 on Wednesday, March 13. The lowest price target for the stock is $3 — slightly more than -30.07 percent from ESV’s current share price.

The shares are currently floating around the first support level of $4.21. Below this, the next support is placed in the zone of $4.12. Till the time, the ESV stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 49.15 on daily chart, which may remain a cause for concern. If the price breaks below $4.12 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $4.38 mark may result into a pull-back move towards $4.47 level.

ESV shares accumulated 0.06 points or 1.42 percent on Wednesday to $4.29 with a light trade volume of 8.458 million shares. After opening the session at $4.3, the shares went as high as $4.39 and as low as $4.215, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.95 billion and now has 455.65 million shares outstanding. Ensco plc (ESV) stock has lost -1.61 percent of market value in 21 trading days.

ESV stock has a trailing 3-year beta of 2.19, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$1.48 a share in the trailing twelve months. The stock’s value has surged 20.51 percent year to date (YTD) against a decline of -12.45 percent in 12 month’s time. The company’s shares still trade -54.89 percent away from its 1-year high of $9.51 and 34.48 percent up from 52-week low of $3.19. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Ensco plc (ESV) are trading at a P/E ratio of 41.41 times earnings reported for the past 12 months. The industry ESV operates in has an average P/E of 1.68. Its P/E ratio went as low as 3.13X and as high as 12.88 over the 5-year span. Further, it is sporting a 1.15 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.74. 22.6 percent is the gross profit margin for Ensco plc and operating margin sits at -13.8 percent. Along with this, the net profit margin is -37.5 percent.