SDRL Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Seadrill Ltd (SDRL) is not a strong buy at this moment for a beginner investor with a long-term strategy. While the technical indicators show some bullish momentum, the lack of significant positive catalysts, weak financial performance, and hedge fund selling suggest a cautious approach. Holding the stock for now is more prudent.
The technical indicators are moderately bullish. The MACD is positive and expanding, the RSI is neutral at 65.13, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near resistance levels (R1: 45.816, R2: 46.918), which could limit immediate upside potential.
Citi upgraded the stock to Neutral from Sell with an increased price target of $46, citing robust Q4 EBITDA and improving recovery visibility.
BTIG raised its price target to $50, highlighting M&A activity and tightening market conditions in the offshore sector.
Hedge funds are selling the stock, with a 239.59% increase in selling activity last quarter.
Financial performance in Q4 2025 showed a significant drop in net income (-109.90% YoY) and EPS (-110.13% YoY), despite revenue growth.
In Q4 2025, Seadrill's revenue increased by 26.28% YoY to $346M, but net income dropped to -$10M (-109.90% YoY), and EPS fell to -0.16 (-110.13% YoY). Gross margin improved significantly to 13.29%, up 160.08% YoY, indicating some operational efficiency gains.
Analyst sentiment is mixed. Citi upgraded the stock to Neutral with a price target of $46, while BTIG maintained a Buy rating with a $50 target. Barclays raised its target to $41 but kept an Equal Weight rating. Fearnley downgraded the stock to Hold with a $43 target, reflecting cautious optimism.
