Zacks Investment Research lowered shares of Nabors Industries Ltd. (NYSE:NBR) from a hold rating to a sell rating in a research report sent to investors on Tuesday.
According to Zacks, “Nabors’s stock price has fallen around 55% since the start of this year, wider than the Zacks categorized 'Oil & Gas – Drilling industry’s decline of 40%. While a renewed slump in crude prices due to a persistent global supply glut sent a shockwave through the industry, Nabors’s rising labor and reactivation costs is also a matter for concern. This is adversely affecting the already weak financials of the company. Over the last few years, the company has kept adding debt to its balance sheet for a fleet recapitalization program. This has increased the leverage ratio of the company to around 54% which might affect the credit metrics of the company adversely. Further, we also need to factor the dismal earnings surprise history and unfavorable return on equity. Given these headwinds, we see Nabors as a risky bet that investors should sell.”
Several other analysts also recently issued reports on NBR. Scotiabank reiterated a buy rating and issued a $22.00 price target on shares of Nabors Industries in a report on Wednesday, March 22nd. Jefferies Group LLC reiterated a hold rating and issued a $15.00 price target on shares of Nabors Industries in a report on Wednesday, March 22nd. Credit Suisse Group reiterated a buy rating and issued a $21.00 price target on shares of Nabors Industries in a report on Thursday, March 30th. TheStreet downgraded Nabors Industries from a c- rating to a d+ rating in a report on Monday, March 27th. Finally, Royal Bank Of Canada reiterated a buy rating and issued a $20.00 price target on shares of Nabors Industries in a report on Monday, April 3rd. Three investment analysts have rated the stock with a sell rating, nine have issued a hold rating and seventeen have assigned a buy rating to the company. Nabors Industries has a consensus rating of Hold and an average target price of $14.93.
Nabors Industries (NYSE NBR) traded down 3.08% on Tuesday, reaching $7.54. The company had a trading volume of 6,633,041 shares. Nabors Industries has a 12 month low of $6.93 and a 12 month high of $18.40. The firm has a 50-day moving average of $8.81 and a 200-day moving average of $13.06. The stock’s market capitalization is $2.15 billion.
Nabors Industries (NYSE:NBR) last announced its quarterly earnings results on Wednesday, April 26th. The oil and gas company reported ($0.52) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.36) by $0.16. Nabors Industries had a negative net margin of 36.49% and a negative return on equity of 11.57%. The company had revenue of $563 million during the quarter, compared to analyst estimates of $569.96 million. During the same quarter in the prior year, the company posted ($0.29) earnings per share. The firm’s revenue for the quarter was up 30.7% on a year-over-year basis. On average, equities research analysts expect that Nabors Industries will post ($1.35) earnings per share for the current fiscal year.
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The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 5th. Shareholders of record on Wednesday, June 14th were issued a $0.06 dividend. The ex-dividend date was Monday, June 12th. This represents a $0.24 dividend on an annualized basis and a yield of 3.18%. Nabors Industries’s dividend payout ratio is currently -8.76%.
In other Nabors Industries news, CFO William J. Restrepo bought 22,000 shares of the business’s stock in a transaction on Tuesday, May 30th. The shares were purchased at an average price of $8.25 per share, with a total value of $181,500.00. Following the completion of the acquisition, the chief financial officer now directly owns 959,694 shares of the company’s stock, valued at approximately $7,917,475.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 4.10% of the company’s stock.
Institutional investors have recently modified their holdings of the company. TFS Capital LLC acquired a new position in shares of Nabors Industries during the first quarter worth about $647,000. KBC Group NV boosted its stake in Nabors Industries by 15.4% in the first quarter. KBC Group NV now owns 423,891 shares of the oil and gas company’s stock worth $5,540,000 after buying an additional 56,564 shares during the period. Wells Fargo & Company MN boosted its stake in Nabors Industries by 73.5% in the first quarter. Wells Fargo & Company MN now owns 747,410 shares of the oil and gas company’s stock worth $9,770,000 after buying an additional 316,556 shares during the period. Municipal Employees Retirement System of Michigan boosted its stake in Nabors Industries by 1.5% in the first quarter. Municipal Employees Retirement System of Michigan now owns 131,340 shares of the oil and gas company’s stock worth $1,717,000 after buying an additional 1,990 shares during the period. Finally, Paloma Partners Management Co boosted its stake in Nabors Industries by 117.2% in the first quarter. Paloma Partners Management Co now owns 68,892 shares of the oil and gas company’s stock worth $901,000 after buying an additional 37,175 shares during the period.
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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