National Oilwell Varco Inc. [NOV] fell -53.09% so far this year. What now?

National Oilwell Varco Inc. [NYSE: NOV] gained 1.38% on the last trading session, reaching $11.75 price per share at the time. The company report on July 27, 2020 that National Oilwell Varco Reports Second Quarter 2020 Results.

National Oilwell Varco, Inc. (NYSE: NOV) today reported second quarter 2020 revenues of $1.50 billion, a decrease of 21 percent compared to the first quarter of 2020 and a decrease of 30 percent compared to the second quarter of 2019. Net loss for the second quarter of 2020 was $93 million, or -6.2 percent of sales, which included non-cash, pre-tax charges (“other items”, see Other Corporate Items for additional detail) of $102 million. Adjusted EBITDA (operating profit excluding depreciation, amortization, and other items) decreased $94 million sequentially to $84 million, or 5.6 percent of sales.

“The oil & gas industry is bearing the full brunt of the economic damage wrought by the COVID-19 pandemic that has driven drilling activity to record lows,” commented Clay Williams, Chairman, President, and CEO. “Against this backdrop, NOV is continuing to aggressively reduce its cost structure and boost cash flow through more efficient operations and better working capital management.”.

National Oilwell Varco Inc. represents 388.28 million in outstanding shares, while the company has a total market value of $4.56 billion with the latest information. NOV stock price has been found in the range of $11.48 to $11.83.

If compared to the average trading volume of 5.22M shares, NOV reached a trading volume of 3934738 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about National Oilwell Varco Inc. [NOV]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NOV shares is $13.38 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NOV stock is a recommendation set at 2.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Cowen have made an estimate for National Oilwell Varco Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on July 29, 2020. While these analysts kept the previous recommendation, Barclays raised their target price from $14 to $8. The new note on the price target was released on May 14, 2020, representing the official price target for National Oilwell Varco Inc. stock. Previously, the target price had yet another raise to $17, while Cowen analysts kept a Outperform rating on NOV stock.

The Average True Range (ATR) for National Oilwell Varco Inc. is set at 0.64, with the Price to Sales ratio for NOV stock in the period of the last 12 months amounting to 0.59. The Price to Book ratio for the last quarter was 0.83. Price to Free Cash Flow for NOV in the course of the last twelve months was 4.94 with Quick ratio for the last quarter at 1.90.

Trading performance analysis for NOV stock

National Oilwell Varco Inc. [NOV] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.64. With this latest performance, NOV shares dropped by -5.17% in over the last four-week period, additionally sinking by -45.07% over the last 6 months – not to mention a drop of -45.95% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NOV stock in for the last two-week period is set at 44.90, with the RSI for the last a single of trading hit 48.07, and the three-weeks RSI is set at 47.98 for National Oilwell Varco Inc. [NOV]. The present Moving Average for the last 50 days of trading for this stock 12.38, while it was recorded at 11.61 for the last single week of trading, and 16.98 for the last 200 days.

National Oilwell Varco Inc. [NOV]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and National Oilwell Varco Inc. [NOV] shares currently have an operating margin of -5.25 and a Gross Margin at +10.12. National Oilwell Varco Inc.’s Net Margin is presently recorded at -71.89.

Return on Total Capital for NOV is now -3.27, given the latest momentum, and Return on Invested Capital for the company is -45.21. Return on Equity for this stock declined to -56.44, with Return on Assets sitting at -36.64. When it comes to the capital structure of this company, National Oilwell Varco Inc. [NOV] has a Total Debt to Total Equity ratio set at 35.70. Additionally, NOV Total Debt to Total Capital is recorded at 26.31, with Total Debt to Total Assets ending up at 20.62. Long-Term Debt to Equity for the company is recorded at 34.24, with the Long-Term Debt to Total Capital now at 25.23.

Reflecting on the efficiency of the workforce at the company, National Oilwell Varco Inc. [NOV] managed to generate an average of -$171,792 per employee. Receivables Turnover for the company is 3.28 with a Total Asset Turnover recorded at a value of 0.51.National Oilwell Varco Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.90 and a Current Ratio set at 2.90.

National Oilwell Varco Inc. [NOV]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, National Oilwell Varco Inc. posted 0.04/share EPS, while the average EPS was predicted by analysts to be reported at 0.12/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -66.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for NOV. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for National Oilwell Varco Inc. go to 41.00%.

An analysis of insider ownership at National Oilwell Varco Inc. [NOV]

There are presently around $4,354 million, or 98.80% of NOV stock, in the hands of institutional investors. The top three institutional holders of NOV stocks are: VANGUARD GROUP INC with ownership of 45,638,748, which is approximately 4.049% of the company’s market cap and around 0.40% of the total institutional ownership; PZENA INVESTMENT MANAGEMENT LLC, holding 31,571,668 shares of the stock with an approximate value of $370.97 million in NOV stocks shares; and BLACKROCK INC., currently with $319.85 million in NOV stock with ownership of nearly 1.837% of the company’s market capitalization.

Positions in National Oilwell Varco Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 200 institutional holders increased their position in National Oilwell Varco Inc. [NYSE:NOV] by around 25,037,711 shares. Additionally, 264 investors decreased positions by around 28,245,942 shares, while 66 investors held positions by with 317,255,963 shares. The mentioned changes placed institutional holdings at 370,539,616 shares, according to the latest SEC report filing. NOV stock had 46 new institutional investments in for a total of 3,684,882 shares, while 92 institutional investors sold positions of 4,817,973 shares during the same period.

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