Independence Contract Drilling Inc. (ICD) shares are trading at higher $3.80 and the avg recommendation for the stock is Hold, while the current analyst price target stands at $4.00.
To add more color to this target, the company’s high over the last year is $24.20 and the low is $1.08. Over the last 52 weeks, ICD is down -74.42% while the S&P 500 is up 18.49%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, ICD reported a profit of 11.68 million. Independence Contract Drilling Inc. also saw revenues decrease to $10.22 million. In addition, ICD has free cash flow of -$5.6 million as of 09-2020. The company’s EBITDA came in at -$0.63 million which compares well with its peers.
ICD booked profit margins of -76.70%, its Return on Equity (ROE) is -28.90%, and its Return on Assets is -18.40%. All told, it is clear that, ICD 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. ICD has a short ratio of 0.16 and outstanding shares of 5.70M.
ICD has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.55 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -22.03. Independence Contract Drilling Inc. ICD also noted assets of $455.72 million at the end of the last quarter. Investors should also keep an eye on sector updates as ICD has historically followed its peers on positive news.
All told, Independence Contract Drilling Inc. ICD has strung together solid data and demonstrated underlying fundamentals. At its current valuation, ICD 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.
Independence Contract Drilling Inc. ICD is now commanding a market cap of 24.05M and a float of 5.06M. ICD 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 ICD 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 ICD, either long or short, and we have not been compensated for this article.