Is Borr Drilling a Buy After Director Tor Olav Troim Buys 200,000 More Shares?

Brendan Coffey, The Motley Fool

Tue, August 25, 2026 at 8:10 PM GMT+3 5 min read

BORR +0.34%

Tor Olav Troim, a Director of Borr Drilling Limited (NYSE:BORR), purchased 200,000 shares on August 25, 2026, according to a recent SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average purchase price ($4.37).

Key questions

What is the nature of the indirect ownership structure for this transaction?
The shares were purchased by Drew Trust, an entity wholly owned by Drew Holdings Ltd., in which Tor Olav Troim serves as the beneficiary.
How does this purchase align with the insider's total equity exposure?
Following this acquisition, the total beneficial ownership reached ~29.5 million shares, which includes 54,545 restricted stock units scheduled to vest in full on Sept. 30, 2026.
What is the current market valuation context for the transaction?
The purchase was executed at $4.37 per share, while Borr Drilling shares were priced at $4.38 as of the Aug. 24, 2026 market close.
What is the scale of the company's current operations?
Borr Drilling operates as an offshore shallow-water drilling contractor with a fleet of jack-up rigs and a workforce of approximately 2,030 full-time employees.

Company Overview

Company Snapshot

Borr Drilling Limited operates as an offshore shallow-water drilling contractor, providing jack-up rig services and related equipment to oil and gas exploration and production companies across the Americas, Southeast Asia, West Africa, the Middle East, North Africa, and Europe.
The company generates revenue through the ownership, contracting, and operation of jack-up rigs that conduct oil and gas drilling and workover operations in shallow-water environments, leveraging a fleet-based business model with associated work crews and technical support services.
Borr Drilling serves major oil and gas exploration and production companies as its primary customers, focusing on shallow-water drilling markets where its specialized jack-up rig fleet provides competitive advantages in operational efficiency and geographic reach.

Borr Drilling Limited is a mid-cap offshore drilling contractor with a market capitalization of $1.3 billion and trailing twelve-month (TTM) revenues of $1.0 billion, operating a specialized fleet of jack-up rigs across multiple global regions. The company's business model centers on providing essential drilling infrastructure and services to exploration and production operators, positioning it as a critical service provider in shallow-water oil and gas development. Despite current net losses of $240.6 million on a TTM basis, the company maintains operational scale and geographic diversification that support its competitive positioning in the offshore drilling sector.

What this transaction means for investors

There are many reasons an insider may sell shares in a company. One reason could be the need to raise cash to fund a large personal expense. Another reason could be for a reasonable portfolio diversification unrelated to their outlook for the company. A third reason could be what investors fear most: a bearish outlook on the company's future.

However, there is only one reason an insider buys stock: they believe the share price is going up.

By that rule of thumb alone, Troim's ~$874,000 purchase of Borr shares is a bullish signal. That signal is further bolstered by studies showing that, more often than not, an insider purchase predicts a higher share price 30 days later. What's more, just a few days prior, the executive bought more than $2 million in shares. He is doubling down.

Troim has served as a director on the board since the company's incorporation. During this period, Troim has also served as Chairman of the Board from August 2017 to September 2019 and from February 2022 to September 2025. It is safe to assume he knows the business inside and out.

Borr Drilling recently closed a deal to expand its fleet to 34 rigs, allowing it to better serve the Mexican market. Unfortunately, the company is locked into leases on its existing fleet, which means Borr won't see the benefit from higher oil prices due to the Iran war for perhaps a year. That means Borr sales for 2026 are expected to inch up to $1.054 billion, a 3% rise. Worse, the business will swing back to a net loss for the year, probably in the $50 million range, due to delays with some customers and higher operating expenses.

But three years out, Wall Street sees revenue rising some 30% as long-term contracts expire and new deals are put into place. A spate of insider buying like Troim's suggests he is playing the long game with Borr shares.

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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Is Borr Drilling a Buy After Director Tor Olav Troim Buys 200,000 More Shares? was originally published by The Motley Fool