National Oilwell Varco, Inc. (NYSE:NOV) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Monday.

According to Zacks, “Aggressive cost reduction and improved efficiencies helped National Oilwell Varco come out with narrower-than-expected fourth quarter loss. Importantly, NOV reported a sequential increase in sales as OPEC's production cut decision helped oil stabilize within a range above $50 per barrel. While maintaining its excellent track record of earnings surprise history of 3 beats in the last 4 quarters, NOV has outperformed the Zacks categorized 'Oil Field machineries & Equipment' industry during that period. However, the ongoing weakness in commodity prices – despite the recent OPEC-driven recovery – has curtailed energy drilling and equipment demand thereby affecting the company’s revenues, earnings and cash flow. Hence, while being incrementally positive on NOV, we expect the shares to remain soft until commodity prices recover sufficiently.”

A number of other brokerages have also recently weighed in on NOV. BidaskClub cut shares of National Oilwell Varco from a “sell” rating to a “strong sell” rating in a research report on Saturday, August 12th. ValuEngine raised shares of National Oilwell Varco from a “sell” rating to a “hold” rating in a research report on Wednesday, September 20th. Credit Suisse Group set a $35.00 price target on shares of National Oilwell Varco and gave the company a “hold” rating in a research report on Saturday, July 29th. FBR & Co reissued a “buy” rating and issued a $42.00 price target on shares of National Oilwell Varco in a research report on Thursday, August 31st. Finally, Barclays PLC reissued a “hold” rating and issued a $38.00 price target on shares of National Oilwell Varco in a research report on Wednesday, August 2nd. Five equities research analysts have rated the stock with a sell rating, seventeen have issued a hold rating, six have given a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average target price of $38.61.

Shares of National Oilwell Varco (NOV) traded down 0.62% during mid-day trading on Monday, hitting $33.88. The stock had a trading volume of 532,710 shares. The stock’s 50-day moving average is $34.42 and its 200 day moving average is $33.68. National Oilwell Varco has a 12 month low of $29.90 and a 12 month high of $43.63. The firm’s market cap is $12.88 billion.

National Oilwell Varco (NYSE:NOV) last released its quarterly earnings data on Thursday, July 27th. The oil and gas exploration company reported ($0.14) earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of ($0.14). National Oilwell Varco had a negative net margin of 33.24% and a negative return on equity of 2.12%. The business had revenue of $1.76 billion during the quarter, compared to analysts’ expectations of $1.78 billion. During the same period in the previous year, the company earned ($0.30) EPS. The company’s revenue for the quarter was up 2.0% on a year-over-year basis. Equities research analysts predict that National Oilwell Varco will post ($0.41) earnings per share for the current fiscal year.

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Several hedge funds have recently added to or reduced their stakes in NOV. Wellington Management Group LLP grew its position in shares of National Oilwell Varco by 15.7% in the first quarter. Wellington Management Group LLP now owns 50,171 shares of the oil and gas exploration company’s stock valued at $2,011,000 after purchasing an additional 6,812 shares during the last quarter. Teachers Advisors LLC grew its position in shares of National Oilwell Varco by 2.7% in the first quarter. Teachers Advisors LLC now owns 776,665 shares of the oil and gas exploration company’s stock valued at $31,136,000 after purchasing an additional 20,678 shares during the last quarter. Thrivent Financial For Lutherans grew its position in shares of National Oilwell Varco by 6.6% in the first quarter. Thrivent Financial For Lutherans now owns 13,980 shares of the oil and gas exploration company’s stock valued at $560,000 after purchasing an additional 860 shares during the last quarter. UBS Group AG grew its position in shares of National Oilwell Varco by 46.3% in the first quarter. UBS Group AG now owns 69,253 shares of the oil and gas exploration company’s stock valued at $2,776,000 after purchasing an additional 21,902 shares during the last quarter. Finally, Renaissance Technologies LLC grew its position in shares of National Oilwell Varco by 3,138.4% in the first quarter. Renaissance Technologies LLC now owns 353,310 shares of the oil and gas exploration company’s stock valued at $14,164,000 after purchasing an additional 342,400 shares during the last quarter. Institutional investors and hedge funds own 90.31% of the company’s stock.

National Oilwell Varco Company Profile

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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Analyst Recommendations for National Oilwell Varco (NYSE:NOV)

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