Schlumberger NV (SLB) Downgraded by Zacks Investment Research to “Sell”
According to Zacks, “Oil prices have been weak for a considerable length of time owing to oversupplied commodity markets. According to OPEC, non-OPEC members will likely continue to produce more oil than expected during 2016 and 2017. Moreover, IEA recently announced its anticipation of a decline in global oil demand for both 2016 and 2017. IEA also expects the oil market to remain oversupplied at least till the first half of 2017. Hence, the oversupplied crude market might keep oil prices low in the coming months. Weakness in oil prices translates to lower incentives for drilling, in turn, lesser income for the likes of Schlumberger that support the drilling players in setting up oil wells. Considering these issues, we expect Schlumberger to perform below the industry levels, which gives investors little reason to hold the stock. “
SLB has been the subject of several other research reports. Jefferies Group restated a hold rating and issued a $85.00 price target (up previously from $80.00) on shares of Schlumberger NV in a report on Monday, July 11th. BMO Capital Markets restated a buy rating on shares of Schlumberger NV in a report on Wednesday, July 13th. Guggenheim restated a buy rating on shares of Schlumberger NV in a report on Wednesday, August 31st. Citigroup Inc. reiterated a buy rating and set a $89.00 price objective (down previously from $90.00) on shares of Schlumberger NV in a research note on Thursday, June 23rd. Finally, Simmons reiterated an overweight rating and set a $97.00 price objective (up previously from $84.00) on shares of Schlumberger NV in a research note on Monday, July 25th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, thirty have given a buy rating and one has given a strong buy rating to the stock. Schlumberger NV currently has an average rating of Buy and an average target price of $90.69.
Schlumberger NV (NYSE:SLB) traded up 2.73% during mid-day trading on Tuesday, reaching $83.61. 2,115,781 shares of the company’s stock traded hands. Schlumberger NV has a one year low of $59.60 and a one year high of $83.97. The firm’s market cap is $116.28 billion. The firm’s 50-day moving average price is $78.67 and its 200 day moving average price is $78.31.
Schlumberger NV (NYSE:SLB) last posted its quarterly earnings results on Thursday, July 21st. The company reported $0.23 EPS for the quarter, beating the consensus estimate of $0.21 by $0.02. Schlumberger NV had a negative net margin of 5.64% and a positive return on equity of 6.88%. The business earned $7.16 billion during the quarter, compared to analyst estimates of $7.09 billion. On average, equities analysts forecast that Schlumberger NV will post $1.12 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 14th. Investors of record on Wednesday, September 7th were given a $0.50 dividend. The ex-dividend date was Friday, September 2nd. This represents a $2.00 annualized dividend and a dividend yield of 2.46%. Schlumberger NV’s dividend payout ratio is presently -168.07%.
In related news, CFO Simon Ayat sold 50,000 shares of the business’s stock in a transaction dated Thursday, August 18th. The shares were sold at an average price of $83.68, for a total value of $4,184,000.00. Following the completion of the transaction, the chief financial officer now owns 153,335 shares of the company’s stock, valued at approximately $12,831,072.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Howard Guild sold 11,900 shares of the business’s stock in a transaction dated Monday, July 25th. The shares were sold at an average price of $81.32, for a total transaction of $967,708.00. Following the completion of the transaction, the insider now directly owns 19,781 shares of the company’s stock, valued at approximately $1,608,590.92. The disclosure for this sale can be found here. 0.36% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Capital World Investors increased its position in shares of Schlumberger NV by 33.4% in the second quarter. Capital World Investors now owns 89,278,480 shares of the company’s stock valued at $7,060,142,000 after buying an additional 22,351,159 shares during the last quarter. Vanguard Group Inc. increased its position in Schlumberger NV by 12.8% in the second quarter. Vanguard Group Inc. now owns 88,801,969 shares of the company’s stock worth $7,022,460,000 after buying an additional 10,096,266 shares in the last quarter. State Street Corp increased its position in Schlumberger NV by 10.1% in the second quarter. State Street Corp now owns 63,598,644 shares of the company’s stock worth $5,029,383,000 after buying an additional 5,820,269 shares in the last quarter. Alliancebernstein L.P. increased its position in Schlumberger NV by 51.8% in the second quarter. Alliancebernstein L.P. now owns 9,778,108 shares of the company’s stock worth $773,253,000 after buying an additional 3,335,102 shares in the last quarter. Finally, Emerald Acquisition Ltd. bought a new position in Schlumberger NV during the second quarter worth approximately $262,975,000. 78.32% of the stock is owned by hedge funds and other institutional investors.
About Schlumberger NV
Schlumberger N.V. is a supplier of technology, integrated project management and information solutions to the international oil and gas exploration and production industry. The Company operates in the oilfield service markets through three groups: Reservoir Characterization, Drilling and Production. Reservoir Characterization Group consists of the principal technologies involved in finding and defining hydrocarbon resources.
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