Executive Director Buys 1.2 Million Shares of Borr Drilling. Does That Make BORR a Buy?
Key Points
Patrick Schorn exercised options for 1.2 million shares at around $1.66 per share.
This transaction increased Schorn’s direct ownership by more than 50%, raising his direct holdings 3,535,000 shares.
The activity was conducted through direct ownership and involved derivative mechanics—specifically, the exercise of employee stock options.
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Offshore drilling specialist Borr Drilling Ltd (NYSE:BORR) attracted a notable insider buy from its Executive Chairman, as the company’s global rig operations continue to expand.
Executive Director Patrick Schorn reported June 22 that he acquired 1.2 million common shares through option exercises on June 16, expanding direct holdings to 3,535,000 shares according to the SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares traded | 1,200,000 |
| Transaction value | $2.0 million |
| Post-transaction shares (direct) | 3,535,000 |
| Post-transaction value (direct ownership) | ~$15.1 million |
Transaction value based on SEC Form 4 weighted average purchase price ($1.66); post-transaction value based on June 17, 2026 market close (total position value: $15,094,450.00).
Key questions
- How did the transaction affect Patrick Schorn’s ownership stake in Borr Drilling Limited?
The exercise increased Schorn’s direct common share holdings by 1,200,000 shares or 51.39%, bringing his total direct ownership to 3,535,000 shares as of June 22, 2026. - What was the derivative context for this transaction?
The 1,200,000 shares were acquired through the exercise of employee stock options, as outlined in the filing footnotes, thereby increasing direct common share holdings rather than through open-market purchases. - How does the transaction price compare to the prevailing market price?
The options were exercised at around $1.66 per share, while Borr Drilling Limited shares closed at $4.27 on June 17, 2026, representing a discount to market value at the time of exercise.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1,051,200,000 |
| Net income (TTM) | $32,900,000 |
| Dividend yield | 3.92% |
| 1-year price change | 99.5% |
* 1-year performance calculated using June 22 as the reference date.
Company snapshot
- Provides offshore shallow-water drilling services, primarily through the ownership and operation of jack-up rigs and related equipment for oil and gas exploration and production.
- Generates revenue by contracting rigs and crews to oil and gas companies for drilling and workover operations in shallow-water regions worldwide.
- Serves integrated oil companies, national oil companies, and independent exploration and production firms across the Americas, Southeast Asia, West Africa, the Middle East, North Africa, and Europe.
Borr Drilling Limited is a leading offshore drilling contractor specializing in shallow-water jack-up rigs, with a presence spanning multiple key oil and gas regions globally. The company leverages a modern fleet and operational expertise to deliver efficient drilling solutions that support upstream exploration and production activities for a diverse client base. Strategic focus on shallow-water environments positions Borr Drilling to capitalize on demand from both major and independent energy producers.
What this transaction means for investors
There are plenty of reasons an insider may sell shares. Not all are bearish on the company, as they may need to raise cash for a large personal expense or be pursuing a reasonable diversification of their portfolio.
There is only one reason an insider buys: they believe the share price is going up.
Patrick Schorn has been Executive Chairman of Borr Drilling since September 2025, after serving as CEO for five years and as a company director since 2018. He knows the business as well as anyone.
However, the bullishness of the acquisition is tempered by the fact that he converted options that were part of his compensation package. It would be more bullish if he bought shares at the market price rather than at the discounted options price.
Still, Schorn could have elected to convert and sell shares immediately. That he is holding the stock is a positive sign. Insider transactions like this are not the most reliable signal for potential investors. It’s a positive, but weigh other information about Borr Drilling’s business before jumping in.
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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.
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