Dril-Quip, Inc. (DRQ) Stock Rating Lowered by Zacks Investment Research
Dril-Quip, Inc. (NYSE:DRQ) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Friday.
According to Zacks, “We view Dril-Quip as an attractive long-term investment based on its highly engineered offshore drilling and production equipment for deepwater severe-service applications and harsh environmental conditions. Also, the equipment supplier is also in excellent financial health with a sustainable free cash flow. Dril-Quip’s technically differentiated products and best-in-class margins make it an attractive investment. The company’s earnings surprise history is impressive. Dril-Quip beat the Zacks Consensus Estimate in three of the last four quarters with an average earnings surprise of 300.47%. However, the company’s price chart shows that it has lagged the broader industry year to date. During the aforesaid period, the company’s shares lost 23%, while the industry decreased 19.4%. 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%.”
DRQ has been the topic of a number of other reports. Cowen and Company set a $43.00 target price on shares of Dril-Quip and gave the stock a “hold” rating in a research report on Friday, October 6th. Gabelli initiated coverage on shares of Dril-Quip in a research report on Friday, October 20th. They set a “hold” rating and a $43.00 target price on the stock. FBR & Co reiterated a “buy” rating on shares of Dril-Quip in a research report on Friday, October 27th. Scotiabank set a $61.00 price objective on shares of Dril-Quip and gave the company a “hold” rating in a report on Friday, October 27th. Finally, TheStreet lowered shares of Dril-Quip from a “c” rating to a “d+” rating in a report on Friday, October 27th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating and three have given a buy rating to the company. Dril-Quip currently has an average rating of “Hold” and a consensus price target of $49.88.
Dril-Quip (NYSE:DRQ) opened at $46.25 on Friday. Dril-Quip has a 12-month low of $35.85 and a 12-month high of $69.40. The stock has a market cap of $1,751.07, a P/E ratio of 110.12 and a beta of 0.68.
Dril-Quip (NYSE:DRQ) last announced its earnings results on Friday, October 27th. The oil and gas company reported $0.05 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of ($0.01) by $0.06. Dril-Quip had a negative net margin of 6.14% and a positive return on equity of 1.19%. The company had revenue of $100.35 million for the quarter, compared to analyst estimates of $106.74 million. During the same period in the prior year, the business earned $0.63 earnings per share. Dril-Quip’s quarterly revenue was down 18.8% on a year-over-year basis. equities research analysts expect that Dril-Quip will post 0.18 EPS for the current fiscal year.
In other Dril-Quip news, CFO Jeffrey J. Bird sold 1,931 shares of the 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 sale, the chief financial officer now directly owns 24,719 shares in the company, valued at $1,025,591.31. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, COO James A. Gariepy sold 13,409 shares of the stock in a transaction on Monday, October 30th. The stock was sold at an average price of $41.49, for a total transaction of $556,339.41. Following the completion of the sale, the chief operating officer now owns 104,753 shares in the company, valued at $4,346,201.97. The disclosure for this sale can be found here. Over the last quarter, insiders sold 37,662 shares of company stock worth $1,567,399. Company insiders own 0.87% of the company’s stock.
Several hedge funds have recently modified their holdings of the company. BlackRock Inc. increased its position in shares of Dril-Quip by 17.9% during the second quarter. BlackRock Inc. now owns 4,221,751 shares of the oil and gas company’s stock worth $206,022,000 after acquiring an additional 640,319 shares in the last quarter. Vanguard Group Inc. increased its position in shares of Dril-Quip by 3.8% during the second quarter. Vanguard Group Inc. now owns 3,226,409 shares of the oil and gas company’s stock worth $157,449,000 after acquiring an additional 118,295 shares in the last quarter. Kayne Anderson Rudnick Investment Management LLC increased its position in shares of Dril-Quip by 41.8% during the third quarter. Kayne Anderson Rudnick Investment Management LLC now owns 3,147,783 shares of the oil and gas company’s stock worth $138,975,000 after acquiring an additional 927,533 shares in the last quarter. Dimensional Fund Advisors LP increased its position in shares of Dril-Quip by 27.9% during the second quarter. Dimensional Fund Advisors LP now owns 3,139,752 shares of the oil and gas company’s stock worth $153,221,000 after acquiring an additional 684,559 shares in the last quarter. Finally, State Street Corp increased its position in shares of Dril-Quip by 22.0% during the second quarter. State Street Corp now owns 1,441,200 shares of the oil and gas company’s stock worth $70,327,000 after acquiring an additional 260,352 shares in the last quarter.
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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