Zacks Investment Research downgraded shares of Nabors Industries Ltd. (NYSE:NBR) from a hold rating to a sell rating in a research note released on Wednesday morning.
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.”
Several other equities analysts also recently commented on NBR. BidaskClub downgraded Nabors Industries from a sell rating to a strong sell rating in a research report on Friday, July 28th. Citigroup Inc. set a $10.00 target price on Nabors Industries and gave the company a buy rating in a research report on Thursday, October 5th. BMO Capital Markets reaffirmed a hold rating and issued a $8.00 target price (down previously from $13.00) on shares of Nabors Industries in a research report on Thursday, July 13th. SunTrust Banks, Inc. reaffirmed a buy rating and issued a $9.00 target price (down previously from $20.00) on shares of Nabors Industries in a research report on Tuesday, October 3rd. Finally, Jefferies Group LLC reaffirmed a hold rating and issued a $11.50 target price on shares of Nabors Industries in a research report on Friday, July 14th. Three investment analysts have rated the stock with a sell rating, eight have issued a hold rating and seventeen have assigned a buy rating to the stock. Nabors Industries presently has a consensus rating of Buy and a consensus target price of $11.64.
Nabors Industries (NYSE:NBR) opened at $5.90 on Wednesday. The company has a quick ratio of 1.22, a current ratio of 1.41 and a debt-to-equity ratio of 1.35. Nabors Industries has a 12-month low of $5.32 and a 12-month high of $18.40.
Nabors Industries (NYSE:NBR) last announced its quarterly 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 business had revenue of $662.50 million for the quarter, compared to analyst estimates of $674.03 million. Nabors Industries had a negative return on equity of 14.74% and a negative net margin of 31.99%. Nabors Industries’s quarterly revenue was up 27.4% compared to the same quarter last year. During the same period last year, the firm earned ($0.55) EPS. equities research analysts anticipate that Nabors Industries will post -1.61 earnings per share for the current year.
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The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 3rd. Shareholders of record on Wednesday, December 13th will be paid a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a yield of 4.07%. The ex-dividend date is Tuesday, December 12th. Nabors Industries’s payout ratio is presently -8.96%.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Bollard Group LLC lifted its stake in Nabors Industries by 1.2% during the second quarter. Bollard Group LLC now owns 312,179 shares of the oil and gas company’s stock worth $2,541,000 after purchasing an additional 3,816 shares during the last quarter. Mitchell Group Inc. increased its holdings in shares of Nabors Industries by 52.0% during the second 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 in the last quarter. Paloma Partners Management Co increased its holdings in shares of Nabors Industries by 117.2% during 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 in the last quarter. Teacher Retirement System of Texas increased its holdings in shares of Nabors Industries by 4.3% during the second 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 in the last quarter. Finally, Arizona State Retirement System increased its holdings in shares of Nabors Industries by 1.5% during the second 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 in the last quarter. Hedge funds and other institutional investors own 95.77% of the company’s stock.
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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