Borr Drilling Stock: Why Its Founder Is Buying Millions in Shares

Borr Drilling's stock has fallen roughly 30% from its recent highs, but one of its founders is buying millions of dollars' worth of shares.

Investor Ross Givens highlights how co-founder Tor Olav Trøim has invested more than $30 million in Borr Drilling stock since March, despite the declining share price.

Why the Insider Buying Matters

Trøim has repeatedly purchased shares as the stock has fallen.

According to the transactions discussed by Givens:

• Total investment: More than $30 million.

• Average purchase price: Approximately $4.43 per share.

• Recent purchases: Around $4.02–$4.13 per share.

Other company insiders have reportedly purchased shares as well.

Givens sees these purchases as a sign that management believes the stock is undervalued. However, insider buying does not guarantee future gains.

Three Reasons Borr Drilling Could Recover

1. Earnings Could Improve

Borr Drilling's quarterly EBITDA reportedly dropped from $88.5 million to $43.8 million.

Givens argues that much of the decline resulted from temporary disruptions, including rigs moving between contracts and preparation costs.

With more rigs returning to work, profitability could improve.

2. Limited Supply of New Drilling Rigs

Borr operates a fleet of 29 offshore jackup drilling rigs.

Building a new rig can cost approximately $250–$300 million, while Borr has acquired existing rigs at significantly lower prices.

Limited new supply could benefit established operators if demand increases.

3. Higher Day Rates Could Boost Profits

Oil companies rent offshore rigs at daily rates.

Givens explains that a $10,000 increase in daily revenue across 23 working rigs could generate approximately $84 million in additional annual revenue, before associated costs.

This makes Borr's earnings highly sensitive to improvements in drilling demand and contract pricing.

What Price Is Ross Givens Watching?

Givens identifies approximately $4.00–$4.70 per share as an interesting price range, close to where the founder has been buying.

He also highlights the possibility of a short squeeze if earnings improve.

However, Borr carries substantial debt, and falling oil prices or weaker drilling demand could put further pressure on the stock.

The Business Lesson

Pay attention to what business owners do with their own money, not just what they say.

Insider purchases can be a useful research signal, but they should always be considered alongside profitability, debt, market demand, and valuation.

Watch the original video: https://www.youtube.com/watch?v=xakiDe5BDWU

Disclaimer: This article summarizes Ross Givens' investment analysis. Stock prices and financial figures are those discussed in the video and may have changed. This is not financial advice.