Zacks Investment Research Downgrades Schlumberger N.V. (SLB) to Sell
Schlumberger N.V. (NYSE:SLB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday.
According to Zacks, “Schlumberger has lesser exposure to the U.S. shale plays – where drillers might start gathering again as crude is trading above $50-per-barrel mark. This is reflected from the fact that during 2016, 2015 and 2014, the oilfield services player generated 80%, 76% and 71% of its consolidated revenues from non-US operations. Thus, Schlumberger is losing out on the opportunity to gain profitable contracts from shale drillers of late. Also, since 2015, Schlumberger’s long-term debt load increased considerably. Moreover, the company’s cash balance continues to plunge over the last seven quarters, reflecting significant balance sheet weakness. On top of that, Schlumberger lost 26.3% value year to date, following the industry’s 32.8% decline.”
Several other equities research analysts have also recently commented on the company. BidaskClub upgraded Schlumberger N.V. from a “strong sell” rating to a “sell” rating in a research note on Wednesday, July 5th. Sanford C. Bernstein upgraded Schlumberger N.V. from a “market perform” rating to an “outperform” rating and cut their price target for the stock from $94.00 to $80.00 in a research note on Thursday, July 6th. They noted that the move was a valuation call. Scotiabank set a $90.00 price target on Schlumberger N.V. and gave the stock a “buy” rating in a research note on Friday, July 7th. Wells Fargo & Company restated an “outperform” rating on shares of Schlumberger N.V. in a research note on Monday, July 10th. Finally, BMO Capital Markets restated a “buy” rating and set a $74.00 price target (down previously from $89.00) on shares of Schlumberger N.V. in a research note on Thursday, July 13th. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating, twenty-one have given a buy rating and two have given a strong buy rating to the company. Schlumberger N.V. has a consensus rating of “Buy” and a consensus target price of $80.08.
Schlumberger N.V. (NYSE:SLB) last issued its quarterly earnings data on Friday, October 20th. The oil and gas company reported $0.42 earnings per share for the quarter, meeting the Zacks’ consensus estimate of $0.42. Schlumberger N.V. had a return on equity of 4.42% and a net margin of 1.86%. The company had revenue of $7.91 billion during the quarter, compared to analysts’ expectations of $7.91 billion. During the same quarter in the previous year, the business earned $0.25 earnings per share. The firm’s revenue for the quarter was up 12.6% on a year-over-year basis.
In related news, Director Tore I. Sandvold sold 3,500 shares of the stock in a transaction dated Tuesday, October 24th. The stock was sold at an average price of $62.63, for a total transaction of $219,205.00. Following the transaction, the director now directly owns 1,500 shares in the company, valued at $93,945. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Michael E. Marks bought 8,000 shares of Schlumberger N.V. stock in a transaction that occurred on Friday, August 11th. The shares were acquired at an average price of $64.20 per share, for a total transaction of $513,600.00. The disclosure for this purchase can be found here. 0.38% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its position in Schlumberger N.V. by 2.9% during the second quarter. Vanguard Group Inc. now owns 99,022,940 shares of the oil and gas company’s stock worth $6,519,670,000 after buying an additional 2,790,227 shares during the period. State Street Corp lifted its position in Schlumberger N.V. by 1.1% during the first quarter. State Street Corp now owns 72,400,230 shares of the oil and gas company’s stock worth $5,655,994,000 after buying an additional 769,874 shares during the period. Dodge & Cox lifted its position in Schlumberger N.V. by 12.8% during the second quarter. Dodge & Cox now owns 48,271,463 shares of the oil and gas company’s stock worth $3,178,193,000 after buying an additional 5,494,165 shares during the period. Bank of New York Mellon Corp lifted its position in Schlumberger N.V. by 1.8% during the first quarter. Bank of New York Mellon Corp now owns 26,666,760 shares of the oil and gas company’s stock worth $2,082,673,000 after buying an additional 477,006 shares during the period. Finally, Northern Trust Corp lifted its position in Schlumberger N.V. by 2.9% during the second quarter. Northern Trust Corp now owns 18,762,468 shares of the oil and gas company’s stock worth $1,235,321,000 after buying an additional 536,928 shares during the period. Hedge funds and other institutional investors own 79.13% of the company’s stock.
About Schlumberger N.V.
Schlumberger N.V. provides technology for reservoir characterization, drilling, production and processing to the oil and gas industry. The Company’s segments include Reservoir Characterization Group, Drilling Group, Production Group and Cameron Group. The Reservoir Characterization Group consists of the principal technologies involved in finding and defining hydrocarbon resources.
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