An investment firm recently trimmed its stake in offshore drilling giant Noble Corporation, despite the company boasting a hefty $7.5 billion backlog and a surging share price. Kerrisdale Advisers, disclosed the sale of 204,364 Noble Corporation shares in a filing made public on February 17, 2026.
The transaction is estimated to be worth around $6.04 million, calculated using average share prices from the last quarter of 2025. Following the sale, Kerrisdale Advisers still holds 147,621 shares in Noble, valued at approximately $4.17 million. Their net position value decreased by $5.79 million over the quarter.
Noble Corporation, a major player in the offshore drilling sector, has seen its stock price more than double in the past year. This surge is attributed to increased offshore drilling activity, coupled with a tightening supply of rigs, which has driven up day rates and boosted investor confidence in the sector.
The company’s recent financial performance underscores this positive sentiment. In the fourth quarter, Noble generated $764 million in total revenue, with $705 million coming from contract drilling services. Net income for the quarter reached $87 million. For the entire year, operating revenue totalled $3.29 billion, and net income reached $216.7 million, reflecting the improved offshore demand and enhanced operational efficiency across its fleet.
Noble has also secured approximately $1.3 billion in new contracts recently, bringing its total backlog to an impressive $7.5 billion. This provides the company with substantial revenue visibility for the coming years.
| Metric | Value |
|---|---|
| Price (as of Friday) | $46.30 |
| Net income (TTM) | $216.72 million |
| Dividend yield | 4% |
| 1-year price change | 106% |
While the sale by Kerrisdale Advisers might raise eyebrows, it appears to be a strategic portfolio adjustment rather than a sign of waning confidence in Noble Corporation. The firm’s broader investment portfolio includes holdings in sectors such as telecommunications, payments, e-commerce, and semiconductor equipment. This suggests that the reduction in Noble shares may simply be a move to rebalance the portfolio after the stock’s strong performance, rather than a complete exit from the energy sector.
