Zacks Investment Research downgraded shares of Nabors Industries (NYSE:NBR) from a hold rating to a sell rating in a research report released on Friday morning.

According to Zacks, “Nabors Industries' stock price has fallen 64.9% since the start of this year, underperforming the Zacks Oil & Gas Drilling industry’s 33.1% decline. This reflects the land drillers' dismal earnings surprise history whereby it has missed forecasts in each of the last three quarters. In particular, Nabors was hit hard by delays/cancellations in its key CanRig equipment. Rising operating and direct costs have also impacted the results of the firm in recent times, adversely affecting the already weak financials of the company. The company’s escalating labor and reactivation costs are big concerns too. As it is, over the last few years, Nabors has kept adding debt to its balance sheet for fleet recapitalization program. This is expected to limit its ability to deliver positive earnings surprises. Given these headwinds, we see Nabors Industries as a risky bet that ordinary investors should exit.”

Other research analysts have also recently issued research reports about the company. Sanford C. Bernstein restated an outperform rating and issued a $12.50 target price on shares of Nabors Industries in a research note on Wednesday, September 6th. Seaport Global Securities upgraded Nabors Industries from a neutral rating to a buy rating and set a $8.00 target price for the company in a research note on Friday, August 18th. SunTrust Banks restated a buy rating and issued a $9.00 target price (down previously from $20.00) on shares of Nabors Industries in a research note on Tuesday, October 3rd. Bank of America lowered their target price on Nabors Industries from $8.50 to $8.00 and set a buy rating for the company in a research note on Wednesday, November 8th. Finally, Royal Bank of Canada restated an outperform rating and issued a $12.00 target price (down previously from $14.00) on shares of Nabors Industries in a research note on Friday, October 6th. Three investment analysts have rated the stock with a sell rating, six have assigned a hold rating and sixteen have given a buy rating to the company. The stock has a consensus rating of Buy and an average price target of $11.07.

Shares of Nabors Industries (NYSE NBR) opened at $5.48 on Friday. Nabors Industries has a fifty-two week low of $5.32 and a fifty-two week high of $18.40. The company has a quick ratio of 1.27, a current ratio of 1.41 and a debt-to-equity ratio of 1.35.

Nabors Industries (NYSE:NBR) last released its earnings results on Tuesday, October 24th. The oil and gas company reported ($0.42) EPS for the quarter, missing the Zacks’ consensus estimate of ($0.33) by ($0.09). The firm had revenue of $662.50 million during the quarter, compared to analysts’ expectations of $674.03 million. Nabors Industries had a negative net margin of 31.99% and a negative return on equity of 14.74%. The company’s revenue for the quarter was up 27.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.55) EPS. equities analysts predict that Nabors Industries will post -1.63 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 3rd. Shareholders of record on Wednesday, December 13th will be paid a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a yield of 4.38%. The ex-dividend date is Tuesday, December 12th. Nabors Industries’s payout ratio is -8.96%.

A number of large investors have recently made changes to their positions in NBR. Brave Asset Management Inc. purchased a new position in Nabors Industries during the third quarter valued at $101,000. Frontier Wealth Management LLC raised its stake 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 last quarter. Cetera Advisors LLC bought a new stake in shares of Nabors Industries in the 3rd quarter worth $115,000. Clear Harbor Asset Management LLC bought a new stake in shares of Nabors Industries in the 3rd quarter worth $121,000. Finally, M&T Bank Corp increased its holdings in shares of Nabors Industries by 6.0% in the 2nd quarter. M&T Bank Corp now owns 16,320 shares of the oil and gas company’s stock worth $133,000 after purchasing an additional 925 shares in the last quarter. Institutional investors and hedge funds own 97.71% of the company’s stock.

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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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