NOV (NYSE:NOV) Shares Gap Up on Better-Than-Expected Earnings

NOV Inc. (NYSE:NOV)’s stock price gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $14.58, but opened at $16.18. NOV shares last traded at $15.84, with a volume of 483,865 shares traded.

The oil and gas exploration company reported $0.41 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.06. NOV had a return on equity of 10.82% and a net margin of 12.05%.

NOV Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, December 20th. Stockholders of record on Friday, December 6th were issued a $0.075 dividend. The ex-dividend date was Friday, December 6th. This represents a $0.30 dividend on an annualized basis and a dividend yield of 1.83%. NOV’s payout ratio is 11.07%.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Atb Cap Markets downgraded NOV from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, December 10th. Wells Fargo & Company cut their price objective on NOV from $16.00 to $15.00 and set an “underweight” rating for the company in a research report on Monday, November 4th. Evercore ISI reissued an “in-line” rating and issued a $18.00 target price (down previously from $25.00) on shares of NOV in a report on Wednesday, January 15th. Stifel Nicolaus reduced their target price on NOV from $25.00 to $24.00 and set a “buy” rating on the stock in a research note on Monday, October 28th. Finally, ATB Capital reaffirmed a “sector perform” rating and issued a $19.00 target price on shares of NOV in a research note on Tuesday, December 10th. Two analysts have rated the stock with a sell rating, nine have issued a hold rating and six have assigned a buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $19.64.

Insiders Place Their Bets

In other news, Director David D. Harrison sold 1,784 shares of the company’s stock in a transaction on Wednesday, November 20th. The stock was sold at an average price of $16.10, for a total transaction of $28,722.40. Following the transaction, the director now owns 110,951 shares of the company’s stock, valued at $1,786,311.10. This represents a 1.58 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 1.85% of the company’s stock.

Hedge Funds Weigh In On NOV

Institutional investors and hedge funds have recently modified their holdings of the business. QRG Capital Management Inc. acquired a new stake in NOV in the 4th quarter valued at about $351,000. Versor Investments LP bought a new stake in shares of NOV during the 4th quarter worth $195,000. Proficio Capital Partners LLC acquired a new position in NOV during the 4th quarter worth approximately $341,000. Illinois Municipal Retirement Fund acquired a new stake in shares of NOV during the 4th quarter valued at $1,018,000. Finally, Ieq Capital LLC acquired a new stake in NOV during the 4th quarter worth approximately $2,326,000. 93.27% of the stock is currently owned by institutional investors and hedge funds.

NOV Price Performance

The company has a current ratio of 2.57, a quick ratio of 1.65 and a debt-to-equity ratio of 0.26. The business has a 50-day simple moving average of $14.93 and a 200 day simple moving average of $16.16. The stock has a market cap of $6.38 billion, a P/E ratio of 6.05, a price-to-earnings-growth ratio of 0.93 and a beta of 1.64.

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.