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 Wednesday, November 1st.
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.”
Other research analysts have also issued research reports about the stock. BMO Capital Markets restated a hold rating and set a $8.00 price target on shares of Nabors Industries in a research note on Wednesday, September 6th. Jefferies Group LLC reissued a neutral rating on shares of Nabors Industries in a report on Thursday, September 7th. UBS AG reaffirmed a buy rating and set a $11.00 price objective (down from $17.00) on shares of Nabors Industries in a report on Thursday, July 6th. Citigroup Inc. reaffirmed a buy rating and issued a $8.00 target price (down from $9.00) on shares of Nabors Industries in a report on Wednesday, September 13th. Finally, Deutsche Bank AG assumed coverage on shares of Nabors Industries in a research note on Tuesday, October 10th. They issued a hold rating and a $9.00 price objective on the stock. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and eighteen have assigned a buy rating to the company. Nabors Industries presently has an average rating of Buy and a consensus price target of C$11.52.
Shares of Nabors Industries (NBR) opened at C$6.40 on Wednesday. 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 C$5.32 and a 52-week high of C$18.40.
Nabors Industries (NYSE:NBR) last posted its earnings results on Tuesday, October 24th. The company reported C($0.42) earnings per share for the quarter, missing analysts’ consensus estimates of C($0.33) by C($0.09). The business had revenue of C$662.50 million during the quarter, compared to the consensus estimate of C$674.03 million. Nabors Industries had a negative return on equity of 14.74% and a negative net margin of 31.99%. The business’s quarterly revenue was up 27.4% on a year-over-year basis. During the same quarter last year, the firm earned ($0.55) earnings per share. sell-side analysts expect that Nabors Industries will post -1.61 earnings per share for the current year.
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The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 3rd. Shareholders of record on Wednesday, December 13th will be paid a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a yield of 3.75%. The ex-dividend date of this dividend is Tuesday, December 12th. Nabors Industries’s dividend payout ratio is currently -8.96%.
A number of institutional investors have recently bought and sold shares of NBR. BlackRock Inc. increased its holdings in Nabors Industries by 7,474.6% in the first quarter. BlackRock Inc. now owns 24,813,903 shares of the company’s stock valued at $324,317,000 after purchasing an additional 24,486,309 shares during the last quarter. Vanguard Group Inc. increased its holdings in Nabors Industries by 0.7% in the second quarter. Vanguard Group Inc. now owns 22,714,902 shares of the company’s stock valued at $184,900,000 after purchasing an additional 149,637 shares during the last quarter. Bank of New York Mellon Corp increased its holdings in Nabors Industries by 16.4% in the second quarter. Bank of New York Mellon Corp now owns 16,440,910 shares of the company’s stock valued at $133,828,000 after purchasing an additional 2,315,688 shares during the last quarter. Van ECK Associates Corp increased its holdings in Nabors Industries by 1.7% in the third quarter. Van ECK Associates Corp now owns 16,252,747 shares of the company’s stock valued at $131,160,000 after purchasing an additional 274,089 shares during the last quarter. Finally, State Street Corp increased its holdings in Nabors Industries by 3.0% in the second quarter. State Street Corp now owns 8,519,273 shares of the company’s stock valued at $69,351,000 after purchasing an additional 248,054 shares during the last quarter. 94.30% of the stock is currently owned by institutional investors.
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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