Schlumberger (SLB) Downgraded to Sell at Zacks Investment Research
Schlumberger (NYSE:SLB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Monday.
According to Zacks, “Schlumberger has lower exposure to U.S. shale plays — where more drillers have gathered following partial recovery in crude prices. Per a report by Baker Hughes, a GE company, almost 271 more oil and gas rigs were added for exploiting prospective domestic resources in 2017. Hence, reduced exposure to U.S. plays may lessen oilfield service contracts for Schlumberger. We are also concerned about the increase in the company’s long-term debt load. Since 2014-end, there has been almost a 41% increase in long-term debt. Over the same time frame, cash balance fell considerably, reflecting weakness in the balance sheet.”
Several other research analysts have also recently weighed in on SLB. Griffin Securities raised shares of Schlumberger from a “neutral” rating to a “buy” rating in a report on Monday. Atlantic Securities raised shares of Schlumberger from a “neutral” rating to an “overweight” rating in a report on Monday, January 22nd. Susquehanna Bancshares set a $88.00 price target on shares of Schlumberger and gave the stock a “buy” rating in a report on Monday, January 22nd. Loop Capital decreased their price target on shares of Schlumberger from $80.00 to $75.00 and set a “buy” rating on the stock in a report on Thursday, October 26th. Finally, UBS Group set a $95.00 price target on shares of Schlumberger and gave the stock a “buy” rating in a report on Monday, January 22nd. Three analysts have rated the stock with a sell rating, seven have issued a hold rating, twenty-six have issued a buy rating and one has given a strong buy rating to the stock. Schlumberger presently has an average rating of “Buy” and a consensus price target of $82.29.
Schlumberger (NYSE:SLB) last released its quarterly earnings results on Friday, January 19th. The oil and gas company reported $0.48 earnings per share for the quarter, topping the consensus estimate of $0.44 by $0.04. The firm had revenue of $8.18 billion for the quarter, compared to analysts’ expectations of $8.12 billion. Schlumberger had a negative net margin of 4.94% and a positive return on equity of 5.27%. The business’s quarterly revenue was up 15.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.27 earnings per share. equities research analysts forecast that Schlumberger will post 2.19 EPS for the current year.
In other news, insider Howard Guild sold 25,000 shares of the firm’s stock in a transaction dated Monday, January 22nd. The stock was sold at an average price of $78.26, for a total transaction of $1,956,500.00. Following the transaction, the insider now directly owns 22,410 shares of the company’s stock, valued at $1,753,806.60. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Simon Ayat sold 75,000 shares of the firm’s stock in a transaction dated Wednesday, January 24th. The shares were sold at an average price of $78.86, for a total value of $5,914,500.00. Following the transaction, the chief financial officer now directly owns 138,827 shares in the company, valued at $10,947,897.22. The disclosure for this sale can be found here. 0.38% of the stock is currently owned by company insiders.
Several large investors have recently made changes to their positions in the company. Harding Loevner LP boosted its holdings in shares of Schlumberger by 1,337.3% during the third quarter. Harding Loevner LP now owns 138,957,632 shares of the oil and gas company’s stock worth $569,035,000 after purchasing an additional 129,289,552 shares during the period. First Eagle Investment Management LLC boosted its holdings in shares of Schlumberger by 103.9% during the second quarter. First Eagle Investment Management LLC now owns 16,025,764 shares of the oil and gas company’s stock worth $1,055,136,000 after purchasing an additional 8,167,945 shares during the period. Dodge & Cox boosted its holdings in shares of Schlumberger 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 purchasing an additional 5,494,165 shares during the period. Capital International Investors boosted its holdings in shares of Schlumberger by 74.8% during the third quarter. Capital International Investors now owns 10,031,514 shares of the oil and gas company’s stock worth $699,798,000 after purchasing an additional 4,294,058 shares during the period. Finally, American Century Companies Inc. boosted its holdings in shares of Schlumberger by 33.5% during the second quarter. American Century Companies Inc. now owns 11,117,713 shares of the oil and gas company’s stock worth $731,990,000 after purchasing an additional 2,791,675 shares during the period. 79.18% of the stock is currently owned by hedge funds and other institutional investors.
COPYRIGHT VIOLATION NOTICE: “Schlumberger (SLB) Downgraded to Sell at Zacks Investment Research” was originally posted by TheOlympiaReport and is the sole property of of TheOlympiaReport. If you are viewing this news story on another website, it was illegally stolen and reposted in violation of US & international trademark & copyright law. The correct version of this news story can be accessed at https://theolympiareport.com/2018/02/12/schlumberger-slb-downgraded-to-sell-at-zacks-investment-research-2.html.
Schlumberger Company Profile
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Schlumberger Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Schlumberger and related companies with MarketBeat.com's FREE daily email newsletter.