Noble Corporation plc (NYSE:NE) on the Path to Ruin

Noble Corporation plc (NYSE:NE) on the Path to Ruin


The Noble Corporation plc (NE) shares are trading at lower $0.30 and the avg recommendation for the stock is Hold.

To add more color to this target, the company’s high over the last year is $2.32 and the low is $0.12. Over the last 52 weeks, NE is down -87.01% while the S&P 500 is up 0.70%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, NE reported a profit of $-1.13 billion. Noble Corporation plc also saw revenues decrease to $281.31 million. In addition, NE has free cash flow of -$37.27 million as of 03-2020 The company’s EBITDA came in at -$1.03 billion which compares well with its peers.

NE Return on Equity (ROE) is -48.80%, and its Return on Assets is -20.50%. All told, it is clear that, NE needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. NE has a short ratio of 1.19 and outstanding shares of 250.05M.

Company Outlook

NE has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 17.53 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -6.78. Noble Corporation plc NE also noted assets of $7.26 billion at the end of the last quarter. Investors should also keep an eye on sector updates as NE has historically followed its peers on positive news.

All told, Noble Corporation plc NE has strung together solid data and demonstrated underlying fundamentals. At its current valuation, NE represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Noble Corporation plc NE is now commanding a market cap of 78.83M and a float of 247.69M. NE is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of NE stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in NE, either long or short, and we have not been compensated for this article.