Zacks Investment Research Downgrades Nabors Industries Ltd. (NYSE:NBR) to Sell

Nabors Industries Ltd. (NYSE:NBR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday, July 11th.

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.”

NBR has been the subject of several other reports. ValuEngine lowered Nabors Industries from a “hold” rating to a “sell” rating in a research note on Saturday, May 27th. Evercore ISI reissued an “outperform” rating and set a $18.00 price objective on shares of Nabors Industries in a research note on Tuesday, June 20th. Instinet raised Nabors Industries from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $15.00 to $17.00 in a research note on Wednesday, April 5th. Jefferies Group LLC set a $12.00 price objective on Nabors Industries and gave the stock a “hold” rating in a research note on Tuesday, June 6th. Finally, UBS AG reaffirmed a “buy” rating and issued a $11.00 target price (down previously from $17.00) on shares of Nabors Industries in a research report on Thursday, July 6th. Three analysts have rated the stock with a sell rating, nine have given a hold rating and seventeen have assigned a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus target price of $14.18.

Shares of Nabors Industries (NYSE NBR) opened at 6.80 on Tuesday. The firm’s 50-day moving average price is $7.65 and its 200-day moving average price is $11.12. The stock’s market capitalization is $1.94 billion. Nabors Industries has a 52-week low of $6.72 and a 52-week high of $18.40.

Nabors Industries (NYSE:NBR) last released its quarterly earnings data on Wednesday, August 2nd. The oil and gas company reported ($0.38) earnings per share for the quarter, missing the consensus estimate of ($0.35) by $0.03. The company had revenue of $630.50 million for the quarter, compared to the consensus estimate of $589.79 million. Nabors Industries had a negative return on equity of 13.31% and a negative net margin of 32.35%. The business’s revenue was up 21.9% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.35) earnings per share. Equities analysts forecast that Nabors Industries will post ($1.49) earnings per share for the current fiscal year.

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In related news, CFO William J. Restrepo bought 22,000 shares of the business’s stock in a transaction on Tuesday, May 30th. The shares were bought at an average cost of $8.25 per share, for a total transaction of $181,500.00. Following the completion of the acquisition, the chief financial officer now directly owns 959,694 shares in the company, valued at $7,917,475.50. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. 4.10% of the stock is owned by company insiders.

Institutional investors have recently bought and sold shares of the company. Invictus RG acquired a new position in Nabors Industries during the first quarter worth approximately $109,000. Aviance Capital Management LLC acquired a new position in Nabors Industries during the first quarter worth approximately $143,000. Coconut Grove Bank raised its position in Nabors Industries by 47.1% in the first quarter. Coconut Grove Bank now owns 10,960 shares of the oil and gas company’s stock worth $143,000 after buying an additional 3,510 shares during the last quarter. Point72 Asia Hong Kong Ltd raised its position in Nabors Industries by 92.2% in the first quarter. Point72 Asia Hong Kong Ltd now owns 11,262 shares of the oil and gas company’s stock worth $147,000 after buying an additional 5,401 shares during the last quarter. Finally, Harbour Capital Advisors LLC raised its position in Nabors Industries by 714.0% in the second quarter. Harbour Capital Advisors LLC now owns 11,396 shares of the oil and gas company’s stock worth $1,400,000 after buying an additional 9,996 shares during the last quarter. Institutional investors and hedge funds own 98.65% of the company’s stock.

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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