Schlumberger (SLB) Cut to Sell at Zacks Investment Research

Schlumberger (NYSE:SLB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Monday.

According to Zacks, “Schlumberger has lower exposure to U.S. shale plays — where more drillers have gathered following partial recovery in crude prices. Per a report by Baker Hughes, a GE company, almost 271 more oil and gas rigs were added for exploiting prospective domestic resources in 2017. Hence, reduced exposure to U.S. plays may lessen oilfield service contracts for Schlumberger. We are also concerned about the increase in the company’s long-term debt load. Since 2014-end, there has been almost a 41% increase in long-term debt. Over the same time frame, cash balance fell considerably, reflecting weakness in the balance sheet.”

Several other equities research analysts have also recently commented on SLB. Griffin Securities raised Schlumberger from a “neutral” rating to a “buy” rating in a research note on Monday. Atlantic Securities raised Schlumberger from a “neutral” rating to an “overweight” rating in a research note on Monday, January 22nd. Susquehanna Bancshares set a $88.00 price objective on Schlumberger and gave the stock a “buy” rating in a research note on Monday, January 22nd. Loop Capital decreased their price objective on Schlumberger from $80.00 to $75.00 and set a “buy” rating for the company in a research note on Thursday, October 26th. Finally, UBS Group set a $95.00 price objective on Schlumberger and gave the stock a “buy” rating in a research note on Monday, January 22nd. Three analysts have rated the stock with a sell rating, seven have assigned a hold rating, twenty-six have assigned a buy rating and one has given a strong buy rating to the stock. The stock presently has an average rating of “Buy” and an average target price of $82.29.

Schlumberger (NYSE:SLB) traded up $1.65 during midday trading on Monday, hitting $66.84. The stock had a trading volume of 3,182,996 shares, compared to its average volume of 10,003,348. The firm has a market cap of $90,310.00, a PE ratio of -61.32, a P/E/G ratio of 4.96 and a beta of 0.98. Schlumberger has a one year low of $61.02 and a one year high of $82.69. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.21 and a quick ratio of 0.95.

Schlumberger (NYSE:SLB) last released its earnings results on Friday, January 19th. The oil and gas company reported $0.48 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.44 by $0.04. The company had revenue of $8.18 billion during the quarter, compared to analysts’ expectations of $8.12 billion. Schlumberger had a positive return on equity of 5.27% and a negative net margin of 4.94%. The business’s revenue for the quarter was up 15.1% on a year-over-year basis. During the same period last year, the firm earned $0.27 EPS. equities research analysts forecast that Schlumberger will post 2.19 earnings per share for the current year.

In other Schlumberger news, CFO Simon Ayat sold 75,000 shares of Schlumberger stock in a transaction dated Wednesday, January 24th. The stock was sold at an average price of $78.86, for a total transaction of $5,914,500.00. Following the transaction, the chief financial officer now directly owns 138,827 shares in the company, valued at $10,947,897.22. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Howard Guild sold 25,000 shares of Schlumberger stock in a transaction dated Monday, January 22nd. The stock was sold at an average price of $78.26, for a total value of $1,956,500.00. Following the transaction, the insider now owns 22,410 shares in the company, valued at $1,753,806.60. The disclosure for this sale can be found here. Insiders own 0.38% of the company’s stock.

Institutional investors have recently modified their holdings of the company. FNY Partners Fund LP bought a new stake in shares of Schlumberger in the fourth quarter valued at about $101,000. Aviance Capital Management LLC bought a new stake in Schlumberger during the second quarter worth about $100,000. Rational Advisors LLC bought a new stake in Schlumberger during the fourth quarter worth about $108,000. Mountain Capital Investment Advisors Inc bought a new stake in Schlumberger during the second quarter worth about $107,000. Finally, Tradewinds Capital Management LLC raised its holdings in Schlumberger by 22.3% during the second quarter. Tradewinds Capital Management LLC now owns 1,636 shares of the oil and gas company’s stock worth $108,000 after acquiring an additional 298 shares in the last quarter. Institutional investors own 79.18% of the company’s stock.

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About Schlumberger

Schlumberger N.V. provides technology for reservoir characterization, drilling, production and processing to the oil and gas industry. The Company’s segments include Reservoir Characterization Group, Drilling Group, Production Group and Cameron Group. The Reservoir Characterization Group consists of the principal technologies involved in finding and defining hydrocarbon resources.

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