Zacks Investment Research cut shares of National Oilwell Varco, Inc. (NYSE:NOV) from a hold rating to a sell rating in a report released on Tuesday morning.
According to Zacks, “Shares of National Oilwell have declined by around 13% year to date. The North American drilling slump has hit the margins of the company. With new competitors entering the market and shrinkage of capital expenditure spending by the drilling contractors, National Oilwell Varco has seen its new equipment package pricing. Further, with a major portion of the company’s total revenue coming from international markets, NOV is exposed to business risk abroad including embargoes and/or expropriation of assets, exchange rate risks, and terrorism among others. As it is, oilfield service stocks are extremely volatile and the correlation of their movement with underlying business fundamentals is difficult to establish. Given these headwinds, we view National Oilwell as a risky bet and maintain bearish stance on the stock. “
Several other equities analysts also recently weighed in on the company. Vetr downgraded National Oilwell Varco from a strong-buy rating to a buy rating and set a $43.48 target price on the stock. in a research report on Wednesday, March 15th. Tudor Pickering began coverage on National Oilwell Varco in a research report on Thursday, March 23rd. They set a hold rating on the stock. Scotiabank reissued a hold rating and set a $37.00 target price on shares of National Oilwell Varco in a research report on Wednesday, March 22nd. R. F. Lafferty began coverage on National Oilwell Varco in a research report on Thursday, April 6th. They set a hold rating and a $39.00 target price on the stock. Finally, Jefferies Group LLC reissued a hold rating and set a $36.00 target price on shares of National Oilwell Varco in a research report on Tuesday, April 11th. Four equities research analysts have rated the stock with a sell rating, eighteen have assigned a hold rating, five have given a buy rating and one has given a strong buy rating to the stock. The company presently has a consensus rating of Hold and an average price target of $39.35.
National Oilwell Varco (NYSE NOV) traded up 0.56% during mid-day trading on Tuesday, hitting $33.98. The stock had a trading volume of 2,904,283 shares. The stock’s market cap is $12.91 billion. National Oilwell Varco has a 12 month low of $29.79 and a 12 month high of $43.63. The stock’s 50-day moving average price is $33.20 and its 200-day moving average price is $36.96.
National Oilwell Varco (NYSE:NOV) last released its quarterly earnings data on Wednesday, April 26th. The oil and gas exploration company reported ($0.17) earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of ($0.20) by $0.03. National Oilwell Varco had a negative return on equity of 2.44% and a negative net margin of 35.50%. The business had revenue of $1.74 billion for the quarter, compared to the consensus estimate of $1.67 billion. During the same quarter in the previous year, the company posted ($0.06) EPS. The company’s revenue was down 20.5% compared to the same quarter last year. On average, analysts predict that National Oilwell Varco will post ($0.40) earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Friday, June 30th. Investors of record on Friday, June 16th were given a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 0.59%. The ex-dividend date of this dividend was Wednesday, June 14th. National Oilwell Varco’s dividend payout ratio is currently -3.12%.
A number of hedge funds and other institutional investors have recently made changes to their positions in NOV. Exane Derivatives raised its position in shares of National Oilwell Varco by 113.8% in the second quarter. Exane Derivatives now owns 3,985 shares of the oil and gas exploration company’s stock valued at $131,000 after buying an additional 2,121 shares in the last quarter. OLD National Bancorp IN acquired a new position in shares of National Oilwell Varco during the second quarter valued at about $292,000. Mn Services Vermogensbeheer B.V. raised its position in shares of National Oilwell Varco by 510.2% in the second quarter. Mn Services Vermogensbeheer B.V. now owns 61,457 shares of the oil and gas exploration company’s stock valued at $2,024,000 after buying an additional 51,385 shares in the last quarter. Chevy Chase Trust Holdings Inc. raised its position in shares of National Oilwell Varco by 1.1% in the second quarter. Chevy Chase Trust Holdings Inc. now owns 476,189 shares of the oil and gas exploration company’s stock valued at $15,686,000 after buying an additional 4,986 shares in the last quarter. Finally, National Pension Service raised its position in shares of National Oilwell Varco by 9.8% in the second quarter. National Pension Service now owns 371,961 shares of the oil and gas exploration company’s stock valued at $12,066,000 after buying an additional 33,059 shares in the last quarter. 91.28% of the stock is currently owned by institutional investors.
National Oilwell Varco Company Profile
National Oilwell Varco, Inc is an oilfield equipment manufacturer and technology provider. The Company operates through four segments: Rig Systems, Rig Aftermarket, Wellbore Technologies and Completion & Production Solutions. The Rig Systems segment makes and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and offshore.
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