Zacks Investment Research cut shares of Dril-Quip (NYSE:DRQ) from a hold rating to a sell rating in a research report report published on Wednesday morning.

According to Zacks, “Dril-Quip’s stock showed significant pricing weaknesses over the last one year. During the aforesaid period, the company’s shares slipped 21.2%, whereas the broader industry lost 19.6%.  Dril-Quip is also facing pressure on top line. Over the past three years (2014–2016), total revenues declined at a CAGR of 23.9%. Lower oil prices than mid-2014 may also hinder the company’s earnings potential. This is because weak crude may lead to lower exploration and production activities, in turn, limiting contracts for the Oil Field Machinery & Equipment industry. Other company-specific risks include new product growth challenges, potential backlog losses and high dependence on its top customers. Additionally, delays in deepwater infrastructure awards may also hinder the company’s growth prospects.”

DRQ has been the topic of a number of other research reports. Cowen set a $43.00 price objective on Dril-Quip and gave the stock a hold rating in a research note on Friday, October 6th. Gabelli started coverage on Dril-Quip in a research note on Friday, October 20th. They set a hold rating and a $43.00 price objective on the stock. ValuEngine cut Dril-Quip from a hold rating to a sell rating in a research note on Sunday, December 31st. Piper Jaffray Companies restated a hold rating and issued a $38.00 price target on shares of Dril-Quip in a research note on Friday, November 10th. Finally, FBR & Co restated a buy rating on shares of Dril-Quip in a research note on Friday, October 27th. Three equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and two have given a buy rating to the company’s stock. The company has a consensus rating of Hold and a consensus price target of $48.57.

Shares of Dril-Quip (NYSE:DRQ) opened at $52.95 on Wednesday. Dril-Quip has a 12 month low of $35.85 and a 12 month high of $67.95. The company has a market capitalization of $1,990.00, a P/E ratio of -71.55 and a beta of 0.74.

Dril-Quip (NYSE:DRQ) last announced its quarterly earnings data on Friday, October 27th. The oil and gas company reported $0.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.01) by $0.06. Dril-Quip had a positive return on equity of 1.19% and a negative net margin of 6.14%. The company had revenue of $100.35 million for the quarter, compared to analysts’ expectations of $106.74 million. During the same quarter in the prior year, the business posted $0.63 EPS. The business’s revenue was down 18.8% compared to the same quarter last year. equities analysts forecast that Dril-Quip will post 0.21 earnings per share for the current year.

In other Dril-Quip news, insider Blake T. Deberry sold 10,000 shares of the company’s stock in a transaction on Wednesday, November 15th. The stock was sold at an average price of $44.66, for a total value of $446,600.00. Following the transaction, the insider now directly owns 126,208 shares of the company’s stock, valued at approximately $5,636,449.28. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Jeffrey J. Bird sold 1,931 shares of the company’s stock in a transaction on Monday, October 30th. The shares were sold at an average price of $41.49, for a total value of $80,117.19. Following the completion of the transaction, the chief financial officer now directly owns 24,719 shares in the company, valued at $1,025,591.31. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 45,662 shares of company stock worth $1,927,019. Insiders own 0.87% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of DRQ. Cubist Systematic Strategies LLC acquired a new stake in shares of Dril-Quip during the 3rd quarter worth $484,000. Stifel Financial Corp grew its holdings in shares of Dril-Quip by 8.8% during the 3rd quarter. Stifel Financial Corp now owns 73,853 shares of the oil and gas company’s stock worth $3,271,000 after purchasing an additional 5,998 shares in the last quarter. OxFORD Asset Management LLP acquired a new stake in shares of Dril-Quip during the 3rd quarter worth $695,000. Schwab Charles Investment Management Inc. grew its holdings in shares of Dril-Quip by 12.3% during the 3rd quarter. Schwab Charles Investment Management Inc. now owns 281,882 shares of the oil and gas company’s stock worth $12,446,000 after purchasing an additional 30,800 shares in the last quarter. Finally, Campbell & CO Investment Adviser LLC acquired a new stake in shares of Dril-Quip during the 3rd quarter worth $339,000.

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About Dril-Quip

Dril-Quip, Inc (Dril-Quip) designs, manufactures, sells and services engineered drilling and production equipment. The Company’s operations are organized into three geographic segments: Western Hemisphere, including North and South America, headquartered in Houston, Texas; Eastern Hemisphere, including Europe and Africa, headquartered in Aberdeen, Scotland, and Asia-Pacific, including the Pacific Rim, Southeast Asia, Australia, India and the Middle East, headquartered in Singapore.

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