SCHEDULE: Elliott Management Sells Seadrill Shares

Elliott Investment Management L.P. has significantly reduced its holdings in Seadrill Ltd. over the past sixty days, selling over 700,000 shares.

Summary

• Elliott Investment Management L.P. (EIM) has reported transactions in Seadrill Ltd. common shares over the past 60 days.
• During this period, EIM sold a total of 700,000 shares.
• The sales occurred between August 10, 2026, and September 21, 2026.
• The weighted average selling price was approximately $47.59 per share.
• EIM's beneficial ownership has decreased, though they still hold derivative agreements representing economic exposure.
• The total cost of shares reported in this amendment is approximately $80,653,737.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to significant selling activity by a major holder, indicating potential concerns or a strategic shift.

Negatives

• Elliott Investment Management L.P., a significant holder, has sold a substantial number of Seadrill shares.
• Over 700,000 shares were sold between August 10, 2026, and September 21, 2026.
• The total value of shares sold is substantial, indicating a reduction in direct equity stake.

Risks

• Significant selling pressure from a major investor like Elliott Investment Management L.P. could negatively impact the stock price.
• The reduction in direct share ownership by EIM might signal a change in their investment thesis or outlook for Seadrill.

Future Outlook

The filing details past transactions and current holdings, but does not provide explicit forward-looking statements or guidance from Seadrill Ltd. management regarding future performance.

Management Comments

• The Reporting Person may effect purchases of the Common Shares through margin accounts maintained for the Elliott Funds with prime brokers, which extend margin credit as and when required to open or carry positions in their margin accounts, subject to applicable federal margin regulations, stock exchange rules and such firms' credit policies.
• Positions in the Common Shares may be held in margin accounts and may be pledged as collateral security for the repayment of debit balances in such accounts.
• Since other securities may be held in such margin accounts, it may not be possible to determine the amounts, if any, of margin used to purchase the Common Shares.
• The Derivative Agreements provide the Elliott Funds with economic results that are comparable to the economic results of ownership but do not provide them or the Reporting Person with the power to vote or direct the voting or dispose of or direct the disposition of the shares that are referenced in the Derivative Agreements.
• The Reporting Person disclaims beneficial ownership in the Subject Shares.

Industry Context

StockSavvy.ai notes that significant selling by a major activist investor like Elliott Investment Management L.P. can be a strong signal to the market, often preceding or coinciding with negative news or a change in strategic direction for the company. This filing indicates a reduction in direct stake, which warrants close monitoring of Seadrill's operational and financial performance.

Stakeholder Impact

• Shareholders may experience negative price pressure due to the significant selling by a major investor.
• The reduction in stake by Elliott Investment Management L.P. could influence market sentiment and investor confidence.

Next Steps

• Elliott Investment Management L.P. may continue to effect transactions in the open market or through derivative agreements.
• The company's future performance and strategic decisions will be closely watched by investors following this significant reduction in stake by a major holder.

Key Dates

Recommendation

While the significant selling by Elliott Investment Management L.P. is a negative signal, the filing does not provide enough information about Seadrill's underlying business performance or future prospects to warrant a sell recommendation. The continued economic exposure through derivatives also suggests a nuanced position. Therefore, a 'hold' recommendation is appropriate pending further clarity on Seadrill's strategy and performance.

Keywords

Seadrill Ltd, Elliott Investment Management, Schedule 13D, Common Shares, Stock Transactions, Beneficial Ownership, Derivative Agreements, Insider Selling