Schlumberger NV (SLB) Cut to “Sell” at Zacks Investment Research
Schlumberger NV (NYSE:SLB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “Oil prices have been weak for a considerable length of time owing to oversupplied commodity markets. According to OPEC, non-OPEC members will likely continue to produce more oil than expected during 2016 and 2017. Moreover, IEA recently announced its anticipation of a decline in global oil demand for both 2016 and 2017. IEA also expects the oil market to remain oversupplied at least till the first half of 2017. Hence, the oversupplied crude market might keep oil prices low in the coming months. Weakness in oil prices translates to lower incentives for drilling, in turn, lesser income for the likes of Schlumberger that support the drilling players in setting up oil wells. Considering these issues, we expect Schlumberger to perform below the industry levels, which gives investors little reason to hold the stock. “
Other equities analysts have also recently issued reports about the stock. Societe Generale upgraded shares of Schlumberger NV from a “hold” rating to a “buy” rating and upped their price objective for the stock from $86.00 to $91.00 in a research report on Monday, July 18th. Citigroup Inc. reiterated a “buy” rating and set a $89.00 price objective on shares of Schlumberger NV in a research report on Friday, July 15th. JPMorgan Chase & Co. reiterated a “buy” rating on shares of Schlumberger NV in a research report on Friday, July 22nd. Credit Suisse Group AG reiterated a “buy” rating on shares of Schlumberger NV in a research report on Tuesday, June 28th. Finally, BMO Capital Markets restated a “buy” rating on shares of Schlumberger NV in a research report on Wednesday, July 13th. One analyst has rated the stock with a sell rating, three have assigned a hold rating, thirty have given a buy rating and one has assigned a strong buy rating to the company. The company currently has a consensus rating of “Buy” and an average price target of $90.69.
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Shares of Schlumberger NV (NYSE:SLB) traded up 0.47% during trading on Tuesday, hitting $81.36. 1,793,896 shares of the stock were exchanged. Schlumberger NV has a 52 week low of $59.60 and a 52 week high of $83.97. The firm’s 50 day moving average price is $78.67 and its 200-day moving average price is $78.24. The stock’s market cap is $113.15 billion.
Schlumberger NV (NYSE:SLB) last released its quarterly earnings data on Thursday, July 21st. The company reported $0.23 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.21 by $0.02. The business earned $7.16 billion during the quarter, compared to analysts’ expectations of $7.09 billion. Schlumberger NV had a negative net margin of 5.64% and a positive return on equity of 6.88%. On average, analysts predict that Schlumberger NV will post $1.12 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Friday, October 14th. Stockholders of record on Wednesday, September 7th were given a $0.50 dividend. The ex-dividend date was Friday, September 2nd. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.47%. Schlumberger NV’s dividend payout ratio (DPR) is currently -168.07%.
In other news, VP Stephane Biguet sold 4,227 shares of the firm’s stock in a transaction that occurred on Tuesday, August 2nd. The shares were sold at an average price of $78.52, for a total value of $331,904.04. Following the completion of the transaction, the vice president now directly owns 7,108 shares in the company, valued at $558,120.16. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Tore I. Sandvold sold 2,500 shares of the firm’s stock in a transaction that occurred on Friday, September 30th. The shares were sold at an average price of $78.09, for a total transaction of $195,225.00. Following the completion of the transaction, the director now owns 17,750 shares of the company’s stock, valued at $1,386,097.50. The disclosure for this sale can be found here. 0.36% of the stock is currently owned by insiders.
Institutional investors have recently added to or reduced their stakes in the stock. Invictus RG raised its position in Schlumberger NV by 379.2% in the second quarter. Invictus RG now owns 1,313 shares of the company’s stock worth $104,000 after buying an additional 1,039 shares during the period. Roble Belko & Company Inc bought a new stake in shares of Schlumberger NV during the second quarter valued at about $108,000. Proficio Capital Partners LLC raised its stake in shares of Schlumberger NV by 78.3% in the second quarter. Proficio Capital Partners LLC now owns 1,426 shares of the company’s stock valued at $113,000 after buying an additional 626 shares during the last quarter. J.Safra Asset Management Corp bought a new stake in shares of Schlumberger NV during the second quarter valued at about $114,000. Finally, New Harbor Financial Group LLC raised its stake in shares of Schlumberger NV by 50.0% in the second quarter. New Harbor Financial Group LLC now owns 1,500 shares of the company’s stock valued at $118,000 after buying an additional 500 shares during the last quarter. Institutional investors own 78.32% of the company’s stock.
About Schlumberger NV
Schlumberger N.V. is a supplier of technology, integrated project management and information solutions to the international oil and gas exploration and production industry. The Company operates in the oilfield service markets through three groups: Reservoir Characterization, Drilling and Production. Reservoir Characterization Group consists of the principal technologies involved in finding and defining hydrocarbon resources.
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