NEW YORK (TheStreet) -- Shares of Seadrill (SDRL) are gaining, up 4.41% to $12.08 in mid-morning trading Tuesday, after the company's chairman and president, John Fredriksen, a Norwegian oil tycoon and the biggest owner of the offshore driller, purchased an additional 1.3 million shares, Reuters reports.
Billionaire Fredriksen bought the shares, boosting his stake to 119 million shares or 24.15%, Reuters added.
Seadrill and other oil service stocks have been hit due to declining oil prices since June that has weakened demand, Bloomberg reports.
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Bermuda-based Seadrill is an offshore drilling contractor providing worldwide offshore drilling services to the oil and gas industry.
Separately, TheStreet Ratings team rates SEADRILL LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEADRILL LTD (SDRL) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow."