Ensco plc (ESV): The Insiders Are Selling, Are You?

With 3 sell/buy ratio, Ensco plc (NYSE:ESV) experienced more insider selling than insider buying over the last three months. Could this be a sign for outside investors to start selling as well? ESV recorded 3 sales on the open market in the last three months. They sold nearly 9,008 shares while purchases amounted to zero shares that period. Looking even further back to 12 months, corporate insiders offloaded 352,020 shares when buyers snapped up 1,272,807 shares. The 12-month’s totals signify about a 0.28-to-1 sell/buy ratio.

Brady Steven Joseph parted with a total of 4.5 thousand shares of Ensco plc (ESV) at average share price of $6.22. This insider trade in the company took place on 11/14/2018. The total for the sales was set at $27.99 thousand. After this transaction, the Sr. VP – Eastern Hemisphere account balance stood at 314.86 thousand shares. The stock lost -29.9 percent since that insider sale. On 12/23/2015, Edwards Robert W Iii, Vice President – Finance, sold 1.5 thousand shares at a price per share of $16.22. This removed 24.33 thousand shares from the insider’s fortune and the stock saw a -73.12 percent retreat in value since the news became public. This transaction left 31.43 thousand shares in the Vice President – Finance account.

On 11/02/2015, Executive Vice President & CFO Swent James W Iii performed a sale transaction worth $1.05 million. This sale at $17.81 each has eliminated 59.19 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -75.52 percent decrease since the transaction was reported. The insider now is left with 15.93 thousand shares remaining in the account. Swent James W Iii, who performs the Executive Vice President & CFO job, sold 50 thousand shares for $1.14 million. The disposal occurred on 06/23/2015 was priced at $22.73 per share. The share price plunged -80.82 percent since the reporting date. Swent James W Iii now left with a stake of 75.61 thousand ESV stock worth $329.65 thousand after the insider selling.

The 12-month median price target for Ensco plc (ESV) assigned by the analysts stands at $7, which represents a return potential of 60.55 percent when compared to the closing price of the stock of $4.36 on Friday, January 11. The lowest price target for the stock is $3 — slightly more than -31.19 percent from ESV’s current share price. The stock will probably climb 72.48 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $12-month high price target. This represents a whopping 175.23 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 46.81 on daily chart, which may remain a cause for concern. If the price breaks below $4.2 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $4.43 mark may result into a pull-back move towards $4.5 level. The stock is currently hovering around the first support level of $4.28. Below this, the next support is placed in the zone of $4.2. Till the time, the ESV stock trades above this level, bulls have nothing to fear.

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 1.64. 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 1.12 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.7. 24.4 percent is the gross profit margin for Ensco plc and operating margin sits at -21.5 percent. Along with this, the net profit margin is -36.6 percent.

On 11th of January, Ensco plc (NYSE:ESV) shares ended lower after a volatile session. The shares dropped -0.16 points or -3.54 percent at $4.36 with a light trade volume of 10.686 million shares. After opening the session at $4.39, the shares went as high as $4.42 and as low as $4.27, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.98 billion and now has 453.14 million shares outstanding. Ensco plc (ESV) stock has lost -8.21 percent of market value in 21 trading days.

ESV stock has a trailing 3-year beta of 2.22, 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 -$1.46 a share in the trailing twelve months. The stock’s value has surged 22.47 percent year to date (YTD) against a decline of -38.76 percent in 12 month’s time. The company’s shares still trade -54.15 percent away from its 1-year high of $9.51 and 36.68 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.