NOV (NYSE:NOV) Shares Gap Down Following Weak Earnings

Shares of NOV Inc. (NYSE:NOV) gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $14.16, but opened at $13.22. NOV shares last traded at $13.04, with a volume of 1,083,480 shares.

The oil and gas exploration company reported $0.29 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.30 by ($0.01). NOV had a net margin of 5.36% and a return on equity of 7.25%. The company had revenue of $2.19 billion for the quarter, compared to the consensus estimate of $2.16 billion. During the same quarter in the prior year, the company posted $0.57 EPS. NOV’s revenue was down 1.3% on a year-over-year basis.

NOV Dividend Announcement

The firm also recently disclosed a dividend, which was paid on Friday, June 13th. Stockholders of record on Tuesday, June 3rd were paid a $0.21 dividend. This represents a dividend yield of 3.63%. The ex-dividend date of this dividend was Monday, June 2nd. NOV’s dividend payout ratio (DPR) is 20.00%.

Wall Street Analyst Weigh In

A number of research firms have issued reports on NOV. Wells Fargo & Company reduced their price objective on NOV from $11.00 to $10.00 and set an “underweight” rating on the stock in a research note on Thursday, June 5th. Royal Bank Of Canada reduced their price target on shares of NOV from $19.00 to $18.00 and set an “outperform” rating on the stock in a research report on Wednesday. Morgan Stanley decreased their price target on shares of NOV from $18.00 to $15.00 and set an “overweight” rating on the stock in a research note on Friday, May 16th. Barclays dropped their price objective on shares of NOV from $13.00 to $11.00 and set an “underweight” rating for the company in a research note on Wednesday, April 30th. Finally, Susquehanna reduced their target price on shares of NOV from $18.00 to $17.00 and set a “positive” rating on the stock in a report on Wednesday. Three research analysts have rated the stock with a sell rating, eight have issued a hold rating and seven have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $16.69.

Institutional Trading of NOV

A number of large investors have recently made changes to their positions in the company. Banque Cantonale Vaudoise acquired a new position in shares of NOV in the first quarter valued at approximately $25,000. Huntington National Bank grew its position in NOV by 88.7% in the 4th quarter. Huntington National Bank now owns 2,200 shares of the oil and gas exploration company’s stock valued at $32,000 after buying an additional 1,034 shares during the last quarter. Covestor Ltd increased its stake in NOV by 282.9% in the 4th quarter. Covestor Ltd now owns 2,240 shares of the oil and gas exploration company’s stock valued at $33,000 after buying an additional 1,655 shares during the period. Mirae Asset Global Investments Co. Ltd. purchased a new position in NOV during the 1st quarter worth $36,000. Finally, CX Institutional acquired a new stake in shares of NOV in the 1st quarter worth $42,000. 93.27% of the stock is owned by institutional investors and hedge funds.

NOV Trading Down 1.8%

The firm has a market cap of $4.81 billion, a PE ratio of 10.48, a P/E/G ratio of 3.44 and a beta of 1.28. The company’s fifty day moving average price is $13.03 and its two-hundred day moving average price is $13.63. The company has a quick ratio of 1.76, a current ratio of 2.58 and a debt-to-equity ratio of 0.26.

About NOV

NOV Inc designs, constructs, manufactures, and sells systems, components, and products for oil and gas drilling and production, and industrial and renewable energy sectors in the United States and internationally. It operates through two segments, Energy Equipment, and Energy Products and Services. The company provides solids control and waste management equipment and services, managed pressure drilling, drilling fluids, premium drillpipe, wired pipe, drilling optimization services, tubular inspection and coating services, instrumentation, downhole tools, and drill bits.