Zacks Investment Research Lowers Nabors Industries Ltd. (NBR) to Sell
Nabors Industries Ltd. (NYSE:NBR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Wednesday.
According to Zacks, “We are downgrading our investment thesis on Nabors Industries to ‘Sell’ following the weak Q3 numbers reported by the company amid lower activities in the international markets and higher costs. Rising operating and direct costs impacted the results of the firm in the recent quarter, adversely affecting the already weak financials of the company. The company’s escalating labor and reactivation costs is a big concern. Over the last few years, Nabors has kept adding debt to its balance sheet for fleet recapitalization program. This has increased the leverage ratio of the company to over 57.7% which might affect the credit metrics of the company adversely. These factors are also reflected in NBR’s stock price has fallen around 65% year-to-date, underperforming the industry. We also need to factor the dismal earnings surprise history and unfavorable return to equity. Given the headwinds, we take a bearish stance on the stock.”
Other equities analysts have also recently issued research reports about the stock. Guggenheim raised shares of Nabors Industries from a “neutral” rating to a “buy” rating and set a $10.00 price target for the company in a research report on Tuesday, August 15th. Credit Suisse Group set a $9.00 price objective on shares of Nabors Industries and gave the stock a “buy” rating in a research report on Thursday, August 10th. They noted that the move was a valuation call. Nomura set a $12.00 price objective on shares of Nabors Industries and gave the stock a “buy” rating in a research report on Wednesday, August 9th. UBS AG reaffirmed a “buy” rating and set a $11.00 price objective (down from $17.00) on shares of Nabors Industries in a research report on Thursday, July 6th. Finally, Seaport Global Securities raised shares of Nabors Industries from a “neutral” rating to a “buy” rating and set a $8.00 price objective for the company in a research report on Friday, August 18th. Three research analysts have rated the stock with a sell rating, eight have given a hold rating and seventeen have assigned a buy rating to the company. Nabors Industries presently has an average rating of “Buy” and an average price target of $11.64.
Nabors Industries (NYSE:NBR) last issued its quarterly earnings results on Tuesday, October 24th. The oil and gas company reported ($0.42) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.33) by ($0.09). Nabors Industries had a negative net margin of 31.99% and a negative return on equity of 14.74%. The business had revenue of $662.50 million during the quarter, compared to analysts’ expectations of $674.03 million. During the same period in the prior year, the business earned ($0.55) EPS. The business’s quarterly revenue was up 27.4% on a year-over-year basis. On average, equities analysts forecast that Nabors Industries will post ($1.58) earnings per share for the current fiscal year.
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Several hedge funds and other institutional investors have recently made changes to their positions in the business. Harbour Capital Advisors LLC lifted its stake in shares of Nabors Industries by 714.0% during the second quarter. Harbour Capital Advisors LLC now owns 11,396 shares of the oil and gas company’s stock valued at $1,400,000 after buying an additional 9,996 shares during the period. Wright Investors Service Inc. lifted its stake in shares of Nabors Industries by 2.2% during the second quarter. Wright Investors Service Inc. now owns 12,560 shares of the oil and gas company’s stock valued at $102,000 after buying an additional 265 shares during the period. Frontier Wealth Management LLC lifted its stake in shares of Nabors Industries by 11.4% during the second quarter. Frontier Wealth Management LLC now owns 12,561 shares of the oil and gas company’s stock valued at $102,000 after buying an additional 1,284 shares during the period. Carlton Hofferkamp & Jenks Wealth Management LLC lifted its stake in shares of Nabors Industries by 3.3% during the second quarter. Carlton Hofferkamp & Jenks Wealth Management LLC now owns 13,550 shares of the oil and gas company’s stock valued at $110,000 after buying an additional 435 shares during the period. Finally, HighTower Advisors LLC lifted its stake in shares of Nabors Industries by 26.4% during the first quarter. HighTower Advisors LLC now owns 14,873 shares of the oil and gas company’s stock valued at $193,000 after buying an additional 3,109 shares during the period. 95.77% of the stock is currently owned by 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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