Nabors Industries Ltd. (NBR) Downgraded by Zacks Investment Research
Zacks Investment Research cut shares of Nabors Industries Ltd. (NYSE:NBR) from a hold rating to a sell rating in a report published on Wednesday morning.
According to Zacks, “We are downgrading our investment thesis on Nabors Industries to ‘Sell’ following the weak Q3 numbers reported by the company amid lower activities in the international markets and higher costs. Rising operating and direct costs impacted the results of the firm in the recent quarter, adversely affecting the already weak financials of the company. The company’s escalating labor and reactivation costs is a big concern. Over the last few years, Nabors has kept adding debt to its balance sheet for fleet recapitalization program. This has increased the leverage ratio of the company to over 57.7% which might affect the credit metrics of the company adversely. These factors are also reflected in NBR’s stock price has fallen around 65% year-to-date, underperforming the industry. We also need to factor the dismal earnings surprise history and unfavorable return to equity. Given the headwinds, we take a bearish stance on the stock.”
A number of other brokerages have also recently commented on NBR. ValuEngine cut shares of Nabors Industries from a sell rating to a strong sell rating in a research report on Friday, September 1st. Cowen and Company cut their target price on shares of Nabors Industries from $13.00 to $10.50 and set an outperform rating on the stock in a report on Tuesday, August 8th. Morgan Stanley cut their target price on shares of Nabors Industries from $10.00 to $9.00 and set an equal weight rating on the stock in a report on Monday, August 7th. Citigroup Inc set a $10.00 target price on shares of Nabors Industries and gave the stock a buy rating in a report on Thursday, October 5th. Finally, Wells Fargo & Company cut shares of Nabors Industries from an outperform rating to a market perform rating in a report on Friday, July 7th. Three equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and seventeen have given a buy rating to the company’s stock. Nabors Industries presently has an average rating of Buy and an average target price of $11.64.
Nabors Industries (NBR) opened at $5.90 on Wednesday. The company has a debt-to-equity ratio of 1.35, a quick ratio of 1.22 and a current ratio of 1.41.
Nabors Industries (NYSE:NBR) last issued its quarterly earnings results on Tuesday, October 24th. The oil and gas company reported ($0.42) EPS for the quarter, missing analysts’ consensus estimates 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 for the quarter, compared to the consensus estimate of $674.03 million. During the same quarter in the previous year, the business earned ($0.55) earnings per share. The firm’s revenue was up 27.4% on a year-over-year basis. research analysts expect that Nabors Industries will post -1.61 earnings per share for the current 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 given a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a yield of 4.07%. The ex-dividend date is Tuesday, December 12th. Nabors Industries’s dividend payout ratio is currently -8.96%.
Institutional investors have recently made changes to their positions in the business. Harbour Capital Advisors LLC lifted its position in Nabors Industries by 714.0% during the second quarter. Harbour Capital Advisors LLC now owns 11,396 shares of the oil and gas company’s stock valued at $1,400,000 after buying an additional 9,996 shares during the period. Wright Investors Service Inc. lifted its position in Nabors Industries by 2.2% during the second quarter. Wright Investors Service Inc. now owns 12,560 shares of the oil and gas company’s stock valued at $102,000 after buying an additional 265 shares during the period. Frontier Wealth Management LLC lifted its position in Nabors Industries by 11.4% during the second quarter. Frontier Wealth Management LLC now owns 12,561 shares of the oil and gas company’s stock valued at $102,000 after buying an additional 1,284 shares during the period. Carlton Hofferkamp & Jenks Wealth Management LLC lifted its position in Nabors Industries by 3.3% during the second quarter. Carlton Hofferkamp & Jenks Wealth Management LLC now owns 13,550 shares of the oil and gas company’s stock valued at $110,000 after buying an additional 435 shares during the period. Finally, HighTower Advisors LLC lifted its position in Nabors Industries by 26.4% during the first quarter. HighTower Advisors LLC now owns 14,873 shares of the oil and gas company’s stock valued at $193,000 after buying an additional 3,109 shares during the period. 95.77% of the stock is owned by institutional investors and hedge funds.
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Nabors Industries Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Nabors Industries Ltd. and related companies with Analyst Ratings Network's FREE daily email newsletter.