National Oilwell Varco (NOV) Stock Rating Lowered by Zacks Investment Research
National Oilwell Varco (NYSE:NOV) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.
According to Zacks, “National Oilwell Varco is one of the biggest manufacturers of drilling equipment in the world. We appreciate the company’s large installed base of worldwide rigs that provides for a steady recurring revenue stream. National Oilwell is also investing in its cost reduction efforts. Owing to these positives, the company has been able to report narrower-than-expected loss in the second quarter. Moreover, with the significant advancement of crude oil from their 12-year lows reached in Feb, producers are likely to revive spending on drilling activities that would spur rig count. This, in turn, will result in improved demand for oilfield equipments, thereby driving NOV's revenues, earnings and cash flow. Nonetheless, while being incrementally positive on National Oilwell Varco, we expect the shares to remain soft until commodity prices recover sufficiently.”
Other equities analysts have also issued reports about the company. Citigroup Inc. lowered National Oilwell Varco from a “neutral” rating to a “sell” rating and reduced their price objective for the company from $37.00 to $30.00 in a research report on Monday, October 3rd. Seaport Global Securities reiterated a “neutral” rating on shares of National Oilwell Varco in a research report on Friday, August 19th. Nomura set a $29.00 price objective on National Oilwell Varco and gave the company a “hold” rating in a research report on Tuesday, August 16th. Jefferies Group reiterated a “hold” rating and set a $32.00 price objective on shares of National Oilwell Varco in a research report on Monday, August 1st. Finally, Credit Suisse Group AG reiterated a “sell” rating and set a $23.00 price objective on shares of National Oilwell Varco in a research report on Friday, July 29th. Five equities research analysts have rated the stock with a sell rating, nineteen have given a hold rating and seven have assigned a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus price target of $34.70.
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Shares of National Oilwell Varco (NYSE:NOV) traded up 0.8139% during midday trading on Tuesday, reaching $36.4039. The company’s stock had a trading volume of 1,027,637 shares. National Oilwell Varco has a 12-month low of $25.74 and a 12-month high of $40.24. The company’s market capitalization is $13.75 billion. The company’s 50-day moving average price is $34.72 and its 200 day moving average price is $33.14.
National Oilwell Varco (NYSE:NOV) last announced its earnings results on Thursday, July 28th. The oil and gas exploration company reported ($0.30) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.32) by $0.02. The business had revenue of $1.72 billion for the quarter, compared to analyst estimates of $1.80 billion. National Oilwell Varco had a positive return on equity of 1.83% and a negative net margin of 17.14%. The company’s quarterly revenue was down 55.9% compared to the same quarter last year. During the same period in the prior year, the company earned $0.77 EPS. On average, equities research analysts forecast that National Oilwell Varco will post ($0.92) earnings per share for the current year.
The company also recently declared a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Friday, September 16th were paid a $0.05 dividend. The ex-dividend date was Wednesday, September 14th. This represents a $0.20 dividend on an annualized basis and a dividend yield of 0.55%. National Oilwell Varco’s dividend payout ratio (DPR) is currently -4.40%.
In other news, VP Scott K. Duff sold 3,181 shares of the firm’s stock in a transaction on Monday, August 8th. The stock was sold at an average price of $33.40, for a total value of $106,245.40. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.17% of the stock is owned by insiders.
Several institutional investors have recently added to or reduced their stakes in NOV. NN Investment Partners Holdings N.V. purchased a new position in National Oilwell Varco during the first quarter worth about $1,091,000. ING Groep NV purchased a new position in National Oilwell Varco during the first quarter worth about $419,000. Canada Pension Plan Investment Board increased its position in National Oilwell Varco by 21.4% in the first quarter. Canada Pension Plan Investment Board now owns 17,613 shares of the oil and gas exploration company’s stock worth $548,000 after buying an additional 3,100 shares during the period. State Street Corp increased its position in National Oilwell Varco by 2.7% in the first quarter. State Street Corp now owns 20,025,837 shares of the oil and gas exploration company’s stock worth $622,810,000 after buying an additional 527,616 shares during the period. Finally, Meeder Asset Management Inc. purchased a new position in National Oilwell Varco during the first quarter worth about $193,000. Hedge funds and other institutional investors own 94.09% of the company’s stock.
About National Oilwell Varco
National Oilwell Varco, Inc (NOV) is engaged in providing design, manufacture and sale of equipment and components used in oil and gas drilling, completion and production operations. The Company operates through four segments: Rig Systems, which makes and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and offshore; Rig Aftermarket, which provides aftermarket products and services to support land and offshore rigs, and drilling rig components manufactured by the Company’s Rig Systems segment; Wellbore Technologies, which sells and rents solids control equipment, and provides solids control, waste management and drilling fluids services, and Completion & Production Solutions, which provides technologies for well completions and oil and gas production.
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