Zacks Investment Research downgraded shares of Nabors Industries (NYSE:NBR) from a hold rating to a sell rating in a report released on Friday morning.
According to Zacks, “Nabors Industries' stock price has fallen 64.9% since the start of this year, underperforming the Zacks Oil & Gas Drilling industry’s 33.1% decline. This reflects the land drillers' dismal earnings surprise history whereby it has missed forecasts in each of the last three quarters. In particular, Nabors was hit hard by delays/cancellations in its key CanRig equipment. Rising operating and direct costs have also impacted the results of the firm in recent times, adversely affecting the already weak financials of the company. The company’s escalating labor and reactivation costs are big concerns too. As it is, over the last few years, Nabors has kept adding debt to its balance sheet for fleet recapitalization program. This is expected to limit its ability to deliver positive earnings surprises. Given these headwinds, we see Nabors Industries as a risky bet that ordinary investors should exit.”
Several other analysts also recently commented on the stock. Societe Generale initiated coverage on shares of Nabors Industries in a research report on Thursday, August 31st. They issued a hold rating and a $7.00 price target for the company. Jefferies Group upgraded shares of Nabors Industries from a hold rating to a buy rating and upped their price target for the company from $6.19 to $9.00 in a research report on Wednesday, November 8th. Citigroup reiterated a buy rating and issued a $8.00 price target (down previously from $9.00) on shares of Nabors Industries in a research report on Wednesday, September 13th. BMO Capital Markets reiterated a hold rating and issued a $8.00 price target on shares of Nabors Industries in a research report on Wednesday, September 6th. Finally, Sanford C. Bernstein reiterated an outperform rating and issued a $12.50 price target on shares of Nabors Industries in a research report on Wednesday, September 6th. Three research analysts have rated the stock with a sell rating, six have given a hold rating and sixteen have assigned a buy rating to the company’s stock. The company presently has a consensus rating of Buy and an average price target of $11.07.
Nabors Industries (NBR) traded down $0.10 during mid-day trading on Friday, reaching $5.48. 18,351,070 shares of the company traded hands, compared to its average volume of 9,062,834. Nabors Industries has a 1 year low of $5.32 and a 1 year high of $18.40. The company has a quick ratio of 1.27, a current ratio of 1.41 and a debt-to-equity ratio of 1.35.
Nabors Industries (NYSE:NBR) last released its quarterly earnings results on Tuesday, October 24th. The oil and gas company reported ($0.42) EPS for the quarter, missing the consensus estimate of ($0.33) by ($0.09). Nabors Industries had a negative net margin of 31.99% and a negative return on equity of 14.74%. The business had revenue of $662.50 million during the quarter, compared to analysts’ expectations of $674.03 million. During the same quarter last year, the company earned ($0.55) EPS. The firm’s revenue for the quarter was up 27.4% compared to the same quarter last year. equities research analysts forecast that Nabors Industries will post -1.63 earnings per share for the current fiscal year.
The company 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. The ex-dividend date of this dividend is Tuesday, December 12th. This represents a $0.24 annualized dividend and a yield of 4.38%. Nabors Industries’s dividend payout ratio is currently -8.96%.
Institutional investors and hedge funds have recently made changes to their positions in the business. Brave Asset Management Inc. acquired a new position in Nabors Industries in the 3rd quarter valued at $101,000. Frontier Wealth Management LLC grew its stake in shares of Nabors Industries by 11.4% during the 2nd quarter. Frontier Wealth Management LLC now owns 12,561 shares of the oil and gas company’s stock worth $102,000 after purchasing an additional 1,284 shares during the period. Cetera Advisors LLC acquired a new position in shares of Nabors Industries during the 3rd quarter worth $115,000. Clear Harbor Asset Management LLC acquired a new position in shares of Nabors Industries during the 3rd quarter worth $121,000. Finally, M&T Bank Corp grew its stake in shares of Nabors Industries by 6.0% during the 2nd quarter. M&T Bank Corp now owns 16,320 shares of the oil and gas company’s stock worth $133,000 after purchasing an additional 925 shares during the period. 97.71% of the stock is currently owned by institutional investors.
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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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