Nabors Industries Ltd. (NBR) Upgraded by Zacks Investment Research to Hold
Zacks Investment Research upgraded shares of Nabors Industries Ltd. (NYSE:NBR) from a sell rating to a hold rating in a research report report published on Monday morning.
According to Zacks, “Nabors Industries is one of the market leaders in the North American land drilling market and is well positioned with a sound mix of high performance rigs and new rigs working in the key shale plays. As it is, the company is poised to grow on the OPEC output- cut deal which is expected to improve the crude prices and thus spur the drilling activities. The company’s recent acquisition of Tesco is expected to prove immediately accretive to its earnings and result into various synergies. However, Nabors’ high leverage along with rising operating and direct costs pose risk. We also need to factor the company’s poor earnings surprise history and unfavorable return on equity. All these are also reflected in the dismal price performance of the company which have tumbled more than 60% year-to-date. Therefore, until the commodity price environment strengthens, we maintain a cautious stance on the stock.”
Several other analysts have also issued reports on the stock. Royal Bank Of Canada reiterated a buy rating on shares of Nabors Industries in a research note on Tuesday, June 20th. UBS AG restated a buy rating and set a $11.00 price target (down previously from $17.00) on shares of Nabors Industries in a research report on Thursday, July 6th. Deutsche Bank AG restated a buy rating and set a $13.00 price target (down previously from $20.00) on shares of Nabors Industries in a research report on Tuesday, May 30th. Nomura set a $12.00 price target on shares of Nabors Industries and gave the company a buy rating in a research report on Wednesday, August 9th. Finally, Credit Suisse Group set a $9.00 price objective on shares of Nabors Industries and gave the company a buy rating in a report on Thursday, August 10th. They noted that the move was a valuation call. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating and nineteen have assigned a buy rating to the stock. The company currently has a consensus rating of Buy and an average price target of $13.42.
Shares of Nabors Industries (NBR) traded up 2.2575% during midday trading on Monday, reaching $6.8308. 1,397,828 shares of the company’s stock traded hands. The stock has a 50-day moving average price of $7.00 and a 200-day moving average price of $9.73. The stock’s market cap is $1.95 billion. Nabors Industries has a 52-week low of $6.18 and a 52-week high of $18.40.
Nabors Industries (NYSE:NBR) last released its earnings results on Wednesday, August 2nd. The oil and gas company reported ($0.38) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of ($0.35) by ($0.03). Nabors Industries had a negative net margin of 32.35% and a negative return on equity of 13.31%. The company had revenue of $630.50 million for the quarter, compared to analyst estimates of $589.79 million. During the same quarter in the previous year, the firm earned ($0.35) EPS. The firm’s revenue was up 21.9% on a year-over-year basis. Analysts forecast that Nabors Industries will post ($1.50) earnings per share for the current year.
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The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 3rd. Stockholders of record on Tuesday, September 12th will be issued a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a dividend yield of 3.59%. The ex-dividend date is Monday, September 11th. Nabors Industries’s dividend payout ratio is presently -9.41%.
A number of institutional investors have recently bought and sold shares of the stock. BlackRock Inc. grew its holdings in Nabors Industries by 7,474.6% during the first quarter. BlackRock Inc. now owns 24,813,903 shares of the oil and gas company’s stock worth $324,317,000 after acquiring an additional 24,486,309 shares during the period. Vanguard Group Inc. grew its holdings in Nabors Industries by 0.7% in the second quarter. Vanguard Group Inc. now owns 22,714,902 shares of the oil and gas company’s stock valued at $184,900,000 after purchasing an additional 149,637 shares during the period. Dimensional Fund Advisors LP grew its holdings in Nabors Industries by 5.6% in the first quarter. Dimensional Fund Advisors LP now owns 19,723,712 shares of the oil and gas company’s stock valued at $257,786,000 after purchasing an additional 1,053,328 shares during the period. Morgan Stanley grew its holdings in Nabors Industries by 0.6% in the first quarter. Morgan Stanley now owns 18,787,378 shares of the oil and gas company’s stock valued at $245,552,000 after purchasing an additional 114,423 shares during the period. Finally, Bank of New York Mellon Corp grew 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 oil and gas company’s stock valued at $133,828,000 after purchasing an additional 2,315,688 shares during the period. 95.60% of the stock is currently owned by hedge funds and other 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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