National Oilwell Varco, Inc. (NOV) Lowered to “Sell” at Zacks Investment Research
National Oilwell Varco, Inc. (NYSE:NOV) 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, “Shares of National Oilwell have declined by around 13% year to date. The North American drilling slump has hit the margins of the company. With new competitors entering the market and shrinkage of capital expenditure spending by the drilling contractors, National Oilwell Varco has seen its new equipment package pricing. Further, with a major portion of the company’s total revenue coming from international markets, NOV is exposed to business risk abroad including embargoes and/or expropriation of assets, exchange rate risks, and terrorism among others. As it is, oilfield service stocks are extremely volatile and the correlation of their movement with underlying business fundamentals is difficult to establish. Given these headwinds, we view National Oilwell as a risky bet and maintain bearish stance on the stock. “
NOV has been the subject of a number of other research reports. Vetr downgraded shares of National Oilwell Varco from a “strong-buy” rating to a “buy” rating and set a $43.48 price objective for the company. in a research report on Wednesday, March 15th. Tudor Pickering started coverage on shares of National Oilwell Varco in a research report on Thursday, March 23rd. They set a “hold” rating for the company. R. F. Lafferty started coverage on shares of National Oilwell Varco in a research report on Thursday, April 6th. They set a “hold” rating and a $39.00 price target for the company. Morgan Stanley reiterated an “overweight” rating and set a $50.00 price target (down from $60.00) on shares of National Oilwell Varco in a research report on Wednesday, June 21st. Finally, Scotiabank reiterated a “hold” rating and set a $37.00 price target on shares of National Oilwell Varco in a research report on Wednesday, March 22nd. Four research analysts have rated the stock with a sell rating, seventeen have given a hold rating, five have given a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus price target of $39.35.
National Oilwell Varco (NYSE:NOV) traded up 1.764% during trading on Tuesday, reaching $33.175. The company had a trading volume of 1,780,459 shares. The firm has a 50-day moving average of $33.20 and a 200-day moving average of $36.96. National Oilwell Varco has a 1-year low of $29.79 and a 1-year high of $43.63. The stock’s market capitalization is $12.61 billion.
National Oilwell Varco (NYSE:NOV) last announced its quarterly earnings data on Wednesday, April 26th. The oil and gas exploration company reported ($0.17) EPS for the quarter, beating the Zacks’ consensus estimate of ($0.20) by $0.03. The firm had revenue of $1.74 billion during the quarter, compared to the consensus estimate of $1.67 billion. National Oilwell Varco had a negative net margin of 35.50% and a negative return on equity of 2.44%. The firm’s revenue was down 20.5% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.06) earnings per share. On average, analysts anticipate that National Oilwell Varco will post ($0.40) EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Friday, June 30th. Shareholders of record on Friday, June 16th were paid a $0.05 dividend. The ex-dividend date of this dividend was Wednesday, June 14th. This represents a $0.20 annualized dividend and a yield of 0.61%. National Oilwell Varco’s payout ratio is currently -3.12%.
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A number of hedge funds have recently added to or reduced their stakes in the company. FNY Partners Fund LP bought a new stake in shares of National Oilwell Varco during the first quarter valued at about $120,000. Quadrant Capital Group LLC boosted its stake in shares of National Oilwell Varco by 6.8% in the first quarter. Quadrant Capital Group LLC now owns 3,214 shares of the oil and gas exploration company’s stock valued at $122,000 after buying an additional 205 shares in the last quarter. WMS Partners LLC bought a new stake in shares of National Oilwell Varco during the first quarter valued at about $200,000. Murphy Pohlad Asset Management LLC bought a new stake in shares of National Oilwell Varco during the first quarter valued at about $203,000. Finally, Tiedemann Wealth Management LLC bought a new stake in shares of National Oilwell Varco during the first quarter valued at about $203,000. 91.54% of the stock is owned by hedge funds and other institutional investors.
About National Oilwell Varco
National Oilwell Varco, Inc is an oilfield equipment manufacturer and technology provider. The Company operates through four segments: Rig Systems, Rig Aftermarket, Wellbore Technologies and Completion & Production Solutions. The Rig Systems segment makes and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and offshore.
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