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

According to Zacks, “Nabors Industries' stock price has fallen 64.9% since the start of this year, underperforming the Zacks Oil & Gas Drilling industry’s 33.1% decline. This reflects the land drillers' dismal earnings surprise history whereby it has missed forecasts in each of the last three quarters. In particular, Nabors was hit hard by delays/cancellations in its key CanRig equipment. Rising operating and direct costs have also impacted the results of the firm in recent times, adversely affecting the already weak financials of the company. The company’s escalating labor and reactivation costs are big concerns too. As it is, over the last few years, Nabors has kept adding debt to its balance sheet for fleet recapitalization program. This is expected to limit its ability to deliver positive earnings surprises. Given these headwinds, we see Nabors Industries as a risky bet that ordinary investors should exit.”

Other analysts have also recently issued research reports about the stock. Sanford C. Bernstein reiterated an “outperform” rating and issued a $12.50 price target on shares of Nabors Industries in a research note on Wednesday, September 6th. Seaport Global Securities upgraded shares of Nabors Industries from a “neutral” rating to a “buy” rating and set a $8.00 price target on the stock in a research note on Friday, August 18th. SunTrust Banks reiterated a “buy” rating and issued a $9.00 price target (down previously from $20.00) on shares of Nabors Industries in a research note on Tuesday, October 3rd. Bank of America decreased their price target on shares of Nabors Industries from $8.50 to $8.00 and set a “buy” rating on the stock in a research note on Wednesday, November 8th. Finally, Royal Bank of Canada reiterated an “outperform” rating and issued a $12.00 price target (down previously from $14.00) on shares of Nabors Industries in a research note on Friday, October 6th. Three investment analysts have rated the stock with a sell rating, six have assigned a hold rating and sixteen have issued a buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average price target of $11.07.

Nabors Industries (NYSE:NBR) traded down $0.07 on Friday, hitting $5.52. 3,596,692 shares of the company were exchanged, compared to its average volume of 8,690,556. The company has a debt-to-equity ratio of 1.35, a quick ratio of 1.27 and a current ratio of 1.41. Nabors Industries has a 52 week low of $5.32 and a 52 week high of $18.40.

Nabors Industries (NYSE:NBR) last released its earnings results on Tuesday, October 24th. The oil and gas company reported ($0.42) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.33) by ($0.09). The firm had revenue of $662.50 million for the quarter, compared to analysts’ expectations of $674.03 million. Nabors Industries had a negative net margin of 31.99% and a negative return on equity of 14.74%. The firm’s quarterly revenue was up 27.4% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.55) EPS. equities analysts expect that Nabors Industries will post -1.63 earnings per share for the current year.

Institutional investors have recently bought and sold shares of the company. Mitchell Group Inc. increased its holdings in shares of Nabors Industries by 52.0% in the 2nd quarter. Mitchell Group Inc. now owns 2,704,490 shares of the oil and gas company’s stock worth $22,015,000 after buying an additional 925,140 shares during the last quarter. HAP Trading LLC increased its holdings in shares of Nabors Industries by 479.2% in the 3rd quarter. HAP Trading LLC now owns 44,361 shares of the oil and gas company’s stock worth $358,000 after buying an additional 56,061 shares during the last quarter. Teacher Retirement System of Texas increased its holdings in shares of Nabors Industries by 4.3% in the 2nd quarter. Teacher Retirement System of Texas now owns 23,815 shares of the oil and gas company’s stock worth $194,000 after buying an additional 979 shares during the last quarter. Arizona State Retirement System increased its holdings in shares of Nabors Industries by 1.5% in the 2nd quarter. Arizona State Retirement System now owns 120,500 shares of the oil and gas company’s stock worth $981,000 after buying an additional 1,800 shares during the last quarter. Finally, Comerica Bank grew its holdings in Nabors Industries by 4.3% during the 2nd quarter. Comerica Bank now owns 487,301 shares of the oil and gas company’s stock valued at $3,708,000 after purchasing an additional 20,177 shares during the last quarter. Hedge funds and other institutional investors own 97.71% of the company’s stock.

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About Nabors Industries

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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