Zacks Investment Research Downgrades National Oilwell Varco (NOV) to Hold
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.”
Several other equities research analysts have also issued reports on the stock. Citigroup Inc. raised their target price on shares of National Oilwell Varco from $36.00 to $37.00 and gave the stock a “neutral” rating in a report on Monday, September 12th. Goldman Sachs Group Inc. restated a “neutral” rating on shares of National Oilwell Varco in a report on Tuesday, July 5th. Vetr upgraded shares of National Oilwell Varco from a “buy” rating to a “strong-buy” rating and set a $40.44 target price for the company in a report on Tuesday, June 21st. Seaport Global Securities restated a “neutral” rating on shares of National Oilwell Varco in a report on Friday, August 19th. Finally, Johnson Rice upgraded shares of National Oilwell Varco from a “hold” rating to an “accumulate” rating in a 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 an average target price of $34.70.
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Shares of National Oilwell Varco (NYSE:NOV) traded up 1.52% during midday trading on Tuesday, reaching $36.66. 2,391,464 shares of the company’s stock were exchanged. National Oilwell Varco has a 12-month low of $25.74 and a 12-month high of $40.24. The stock’s 50 day moving average price is $34.78 and its 200 day moving average price is $33.17. The company’s market cap is $13.84 billion.
National Oilwell Varco (NYSE:NOV) last issued its quarterly earnings data on Thursday, July 28th. The oil and gas exploration company reported ($0.30) EPS for the quarter, topping analysts’ consensus estimates of ($0.32) by $0.02. National Oilwell Varco had a negative net margin of 17.14% and a positive return on equity of 1.83%. The business earned $1.72 billion during the quarter, compared to analysts’ expectations of $1.80 billion. During the same period last year, the company posted $0.77 EPS. The business’s revenue was down 55.9% on a year-over-year basis. Equities analysts anticipate that National Oilwell Varco will post ($0.92) earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Friday, September 30th. Investors of record on Friday, September 16th were paid a $0.05 dividend. This represents a $0.20 annualized dividend and a dividend yield of 0.55%. The ex-dividend date was Wednesday, September 14th. National Oilwell Varco’s dividend payout ratio is currently -4.40%.
In related news, VP Scott K. Duff sold 3,181 shares of the business’s stock in a transaction on Monday, August 8th. The shares were sold at an average price of $33.40, for a total value of $106,245.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 0.17% of the stock is currently owned by corporate insiders.
Several institutional investors have recently bought and sold shares of NOV. Vanguard Group Inc. boosted its position in National Oilwell Varco by 21.7% in the second quarter. Vanguard Group Inc. now owns 35,511,716 shares of the oil and gas exploration company’s stock valued at $1,194,969,000 after buying an additional 6,330,248 shares in the last quarter. Dodge & Cox boosted its position in National Oilwell Varco by 25.1% in the first quarter. Dodge & Cox now owns 26,622,720 shares of the oil and gas exploration company’s stock valued at $827,967,000 after buying an additional 5,347,050 shares in the last quarter. FMR LLC boosted its position in National Oilwell Varco by 75.7% in the second quarter. FMR LLC now owns 7,682,968 shares of the oil and gas exploration company’s stock valued at $258,532,000 after buying an additional 3,311,333 shares in the last quarter. Harris Associates L P boosted its position in National Oilwell Varco by 15.3% in the second quarter. Harris Associates L P now owns 13,846,836 shares of the oil and gas exploration company’s stock valued at $465,946,000 after buying an additional 1,841,631 shares in the last quarter. Finally, Ameriprise Financial Inc. boosted its position in National Oilwell Varco by 245.1% in the second quarter. Ameriprise Financial Inc. now owns 1,837,373 shares of the oil and gas exploration company’s stock valued at $61,830,000 after buying an additional 1,304,952 shares in the last quarter. 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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