Nabors Industries Ltd. (NYSE:NBR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.

According to Zacks, “Nabors’s stock price has fallen around 55% since the start of this year, wider than the Zacks categorized 'Oil & Gas – Drilling industry’s decline of 40%. While a renewed slump in crude prices due to a persistent global supply glut sent a shockwave through the industry, Nabors’s rising labor and reactivation costs is also a matter for concern. This is adversely affecting the already weak financials of the company. Over the last few years, the company has kept adding debt to its balance sheet for a fleet recapitalization program. This has increased the leverage ratio of the company to around 54% which might affect the credit metrics of the company adversely. Further, we also need to factor the dismal earnings surprise history and unfavorable return on equity. Given these headwinds, we see Nabors as a risky bet that investors should sell.”

Several other equities analysts also recently commented on the stock. Citigroup Inc. restated a “buy” rating on shares of Nabors Industries in a research note on Wednesday, May 10th. ValuEngine downgraded shares of Nabors Industries from a “hold” rating to a “sell” rating in a research note on Saturday, May 27th. Goldman Sachs Group, Inc. (The) downgraded shares of Nabors Industries from a “conviction-buy” rating to a “buy” rating and upped their price target for the company from $17.50 to $18.00 in a research note on Friday, April 28th. Jefferies Group LLC decreased their price target on shares of Nabors Industries from $15.00 to $11.50 and set a “hold” rating on the stock in a research note on Wednesday, May 3rd. Finally, Deutsche Bank AG restated a “buy” rating and issued a $13.00 price target (down from $20.00) on shares of Nabors Industries in a research note on Tuesday, May 30th. Three analysts have rated the stock with a sell rating, nine have issued a hold rating and seventeen have issued a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average price target of $15.18.

Nabors Industries (NYSE NBR) traded up 0.81% during trading on Tuesday, hitting $7.46. 5,793,731 shares of the stock were exchanged. The firm has a 50-day moving average of $8.81 and a 200-day moving average of $13.06. The stock’s market capitalization is $2.13 billion. Nabors Industries has a 52 week low of $6.93 and a 52 week high of $18.40.

Nabors Industries (NYSE:NBR) last released its quarterly earnings data on Wednesday, April 26th. The oil and gas company reported ($0.52) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.36) by $0.16. Nabors Industries had a negative net margin of 36.49% and a negative return on equity of 11.57%. The company had revenue of $563 million during the quarter, compared to analyst estimates of $569.96 million. During the same quarter in the prior year, the firm earned ($0.29) earnings per share. Nabors Industries’s revenue for the quarter was up 30.7% on a year-over-year basis. Equities research analysts anticipate that Nabors Industries will post ($1.34) earnings per share for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 5th. Stockholders of record on Wednesday, June 14th were issued a $0.06 dividend. The ex-dividend date of this dividend was Monday, June 12th. This represents a $0.24 dividend on an annualized basis and a dividend yield of 3.24%. Nabors Industries’s dividend payout ratio (DPR) is currently -8.76%.

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In related news, CFO William J. Restrepo bought 22,000 shares of the company’s stock in a transaction dated Thursday, May 4th. The stock was purchased at an average price of $9.43 per share, with a total value of $207,460.00. Following the completion of the acquisition, the chief financial officer now owns 939,694 shares of the company’s stock, valued at $8,861,314.42. The purchase was disclosed in a document filed with the SEC, which is available through this link. 4.10% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Strs Ohio boosted its position in Nabors Industries by 77.0% in the first quarter. Strs Ohio now owns 1,843,000 shares of the oil and gas company’s stock worth $24,088,000 after buying an additional 802,000 shares during the period. Shell Asset Management Co. boosted its position in Nabors Industries by 83.1% in the first quarter. Shell Asset Management Co. now owns 87,067 shares of the oil and gas company’s stock worth $1,138,000 after buying an additional 39,520 shares during the period. Glen Harbor Capital Management LLC boosted its position in Nabors Industries by 99.8% in the first quarter. Glen Harbor Capital Management LLC now owns 16,560 shares of the oil and gas company’s stock worth $216,000 after buying an additional 8,272 shares during the period. Nationwide Fund Advisors boosted its position in Nabors Industries by 3.4% in the first quarter. Nationwide Fund Advisors now owns 535,603 shares of the oil and gas company’s stock worth $7,000,000 after buying an additional 17,477 shares during the period. Finally, Retirement Systems of Alabama boosted its position in Nabors Industries by 0.3% in the first quarter. Retirement Systems of Alabama now owns 717,166 shares of the oil and gas company’s stock worth $9,373,000 after buying an additional 2,383 shares during the period. 98.65% of the stock is owned by hedge funds and other institutional investors.

Nabors Industries Company Profile

Nabors Industries Ltd. owns and operates a land-based drilling rig fleet. The Company is a provider of offshore platform drilling rigs in the United States and multiple international markets. The Company conducts its Drilling & Rig Services business through four segments: U.S. Drilling, Canada Drilling, International Drilling and Rig Services.

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Analyst Recommendations for Nabors Industries (NYSE:NBR)

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