SDRL Should I Buy
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Seadrill Ltd (SDRL) is not a strong buy at this moment for a beginner investor with a long-term strategy. While the stock shows some positive momentum in the pre-market and has bullish moving averages, the lack of strong proprietary trading signals, mixed financial performance, and uncertainty in the offshore drilling sector suggest holding off on immediate investment.
The stock's technical indicators show mixed signals. While moving averages are bullish (SMA_5 > SMA_20 > SMA_200), the MACD histogram is negative (-0.106), and RSI is neutral at 55.733. The stock is trading near its resistance levels (R1: 48.598, R2: 49.542), indicating limited immediate upside potential.
The company has shown strong revenue growth in Q4 2025, up 26.28% YoY. Gross margin also improved significantly, up 160.08% YoY. Analysts have raised price targets recently, with BTIG setting a $50 target and Barclays raising its target to $41-$43.
Net income dropped significantly (-109.90% YoY), and EPS declined by -110.13% YoY. Hedge funds are selling heavily, with a 239.59% increase in selling activity last quarter. No recent news or congress trading data to provide additional confidence.
In Q4 2025, revenue increased by 26.28% YoY to $346 million. However, net income dropped to -$10 million, and EPS fell to -$0.16. Gross margin improved significantly to 13.29%, up 160.08% YoY, but overall profitability remains a concern.
Analysts have mixed views. Citi upgraded the stock to Neutral from Sell and raised the price target to $48, citing improved visibility toward recovery in the offshore market. BTIG remains bullish with a $50 price target, while Barclays and Fearnley maintain more cautious stances with Equal Weight and Hold ratings, respectively.
