National-Oilwell Varco (NOV) Lifted to Hold at Zacks Investment Research

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National-Oilwell Varco (NYSE:NOV) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “Post National Oilwell's stronger year-over-year revenues and earnings in the fourth quarter of 2018, the investment thesis of the firm is upgraded to 'Hold' from 'Sell'. The company delivered solid results on the back of improved contribution across all its segments. High demand for its super spec rigs and completion tools are likely to boost its performance. The company's joint venture with Saudi Aramco is also expected to support NOV's drilling technology franchise and contribute to earnings. The strong finnacials of the firm also bodes well. However, the sharp decline in the oil prices in the last months of 2018 led to a contraction in orders, which is likely to impact the near-term prospects of National Oilwell. In fact, the company itself foresees a sequential fall in revenues from all the three segments. As such it is advisable to wait for a better entry point before accumulating shares of National Oilwell.”

A number of other research firms also recently commented on NOV. Jefferies Financial Group lifted their price target on National-Oilwell Varco from $42.00 to $46.00 and gave the stock a “hold” rating in a research note on Thursday, October 18th. ValuEngine downgraded National-Oilwell Varco from a “buy” rating to a “hold” rating in a research note on Wednesday, October 17th. BMO Capital Markets set a $38.00 price target on National-Oilwell Varco and gave the stock a “sell” rating in a research note on Monday, November 5th. Tudor Pickering upgraded National-Oilwell Varco from a “hold” rating to a “buy” rating in a research note on Monday, November 5th. Finally, Cowen decreased their price target on National-Oilwell Varco from $45.00 to $42.00 and set a “market perform” rating for the company in a research note on Monday, October 29th. Three analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and eleven have issued a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus price target of $39.09.

NYSE:NOV traded up $0.13 during mid-day trading on Tuesday, reaching $28.96. The stock had a trading volume of 1,783,483 shares, compared to its average volume of 4,006,129. The company has a market capitalization of $10.87 billion, a price-to-earnings ratio of -361.98, a price-to-earnings-growth ratio of 11.73 and a beta of 1.25. National-Oilwell Varco has a 1-year low of $24.27 and a 1-year high of $49.08. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.83 and a current ratio of 3.11.

National-Oilwell Varco (NYSE:NOV) last posted its quarterly earnings results on Wednesday, February 6th. The oil and gas exploration company reported $0.03 EPS for the quarter, missing the Zacks’ consensus estimate of $0.08 by ($0.05). The firm had revenue of $2.40 billion during the quarter, compared to analyst estimates of $2.18 billion. National-Oilwell Varco had a negative return on equity of 0.22% and a negative net margin of 0.37%. The firm’s revenue for the quarter was up 21.8% on a year-over-year basis. During the same quarter last year, the business posted ($0.04) earnings per share. On average, equities research analysts forecast that National-Oilwell Varco will post 0.4 EPS for the current fiscal year.

National-Oilwell Varco announced that its board has authorized a share buyback plan on Tuesday, November 6th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the oil and gas exploration company to reacquire up to 3.5% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s management believes its stock is undervalued.

Several institutional investors and hedge funds have recently added to or reduced their stakes in NOV. Pzena Investment Management LLC raised its holdings in shares of National-Oilwell Varco by 107.9% during the third quarter. Pzena Investment Management LLC now owns 9,175,821 shares of the oil and gas exploration company’s stock valued at $395,294,000 after buying an additional 4,761,228 shares during the last quarter. Capital Research Global Investors raised its holdings in shares of National-Oilwell Varco by 48.1% during the third quarter. Capital Research Global Investors now owns 9,588,000 shares of the oil and gas exploration company’s stock valued at $413,051,000 after buying an additional 3,114,117 shares during the last quarter. Alliancebernstein L.P. raised its holdings in shares of National-Oilwell Varco by 197.1% during the third quarter. Alliancebernstein L.P. now owns 2,950,274 shares of the oil and gas exploration company’s stock valued at $127,098,000 after buying an additional 1,957,301 shares during the last quarter. Ruffer LLP raised its holdings in shares of National-Oilwell Varco by 44.1% during the fourth quarter. Ruffer LLP now owns 6,049,185 shares of the oil and gas exploration company’s stock valued at $155,360,000 after buying an additional 1,852,389 shares during the last quarter. Finally, BlackRock Inc. raised its holdings in shares of National-Oilwell Varco by 4.3% during the fourth quarter. BlackRock Inc. now owns 26,005,356 shares of the oil and gas exploration company’s stock valued at $668,337,000 after buying an additional 1,072,861 shares during the last quarter. 92.16% of the stock is currently owned by institutional investors.

National-Oilwell Varco Company Profile

National Oilwell Varco, Inc designs, manufactures, and sells systems and components used in oil and gas drilling and production; and provides oilfield services to the upstream oil and gas industry worldwide. It operates through three segments: Wellbore Technologies, Completion & Production Solutions, and Rig Technologies.

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