National Oilwell Varco Inc. [NYSE: NOV] stock went on an upward path that rose over 3.70% on Friday, amounting to a one-week price decrease of less than -8.60%. The company report on October 27, 2020 that National Oilwell Varco Reports Third Quarter 2020 Results.
National Oilwell Varco, Inc. (NYSE: NOV) today reported third quarter 2020 revenues of $1.38 billion, a decrease of seven percent compared to the second quarter of 2020 and a decrease of 35 percent compared to the third quarter of 2019. Net loss for the third quarter of 2020 improved $38 million sequentially to $55 million, or -4.0 percent of sales, which included non-cash, pre-tax charges (“other items,” see Other Corporate Items for additional detail) of $62 million. Adjusted EBITDA (operating profit excluding depreciation, amortization, and other items) decreased $13 million sequentially to $71 million, or 5.1 percent of sales.
“Despite the sharp contraction in demand for oil and gas-related products and services caused by the global pandemic, our team’s solid execution on cost reduction and working capital initiatives continues to exceed expectations, resulting in $323 million in cash flow from operations and a reduction in net debt to $339 million during the third quarter of 2020,” commented Clay Williams, Chairman, President and CEO.
Over the last 12 months, NOV stock dropped by -62.86%. The one-year National Oilwell Varco Inc. stock forecast points to a potential upside of 33.75. The average equity rating for NOV stock is currently 2.60, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $3.14 billion, with 385.00 million shares outstanding and 361.57 million shares in the current float. Compared to the average trading volume of 5.12M shares, NOV stock reached a trading volume of 6521948 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on 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 $12.68 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.
BMO Capital Markets have made an estimate for National Oilwell Varco Inc. shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on October 02, 2020. While these analysts kept the previous recommendation, Cowen raised their target price from $15 to $16. The new note on the price target was released on July 29, 2020, representing the official price target for National Oilwell Varco Inc. stock. Previously, the target price had yet another drop from $14 to $8, while Barclays kept a Equal Weight rating on NOV stock.
The Average True Range (ATR) for National Oilwell Varco Inc. is set at 0.50, with the Price to Sales ratio for NOV stock in the period of the last 12 months amounting to 0.45. The Price to Book ratio for the last quarter was 0.59. Price to Free Cash Flow for NOV in the course of the last twelve months was 3.36 with Quick ratio for the last quarter at 1.90.
NOV Stock Performance Analysis:
National Oilwell Varco Inc. [NOV] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.60. With this latest performance, NOV shares dropped by -3.00% in over the last four-week period, additionally sinking by -31.87% over the last 6 months – not to mention a drop of -62.86% 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 38.86, with the RSI for the last a single of trading hit 40.25, and the three-weeks RSI is set at 38.79 for National Oilwell Varco Inc. [NOV]. The present Moving Average for the last 50 days of trading for this stock 10.18, while it was recorded at 8.41 for the last single week of trading, and 13.09 for the last 200 days.
Insight into National Oilwell Varco Inc. Fundamentals:
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.
NOV Stock EPS
With the latest financial reports released by the company, National Oilwell Varco Inc. posted 0.4/share EPS, while the average EPS was predicted by analysts to be reported at 0.16/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 150.00%. 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%.
National Oilwell Varco Inc. [NOV] Insider Position Details
There are presently around $3,190 million, or 97.80% of NOV stock, in the hands of institutional investors. The top three institutional holders of NOV stocks are: VANGUARD GROUP INC with ownership of 45,485,414, which is approximately -0.336% of the company’s market cap and around 0.10% of the total institutional ownership; PZENA INVESTMENT MANAGEMENT LLC, holding 37,946,645 shares of the stock with an approximate value of $318.75 million in NOV stocks shares; and BLACKROCK INC., currently with $237.14 million in NOV stock with ownership of nearly 3.71% of the company’s market capitalization.
Positions in National Oilwell Varco Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 194 institutional holders increased their position in National Oilwell Varco Inc. [NYSE:NOV] by around 32,592,879 shares. Additionally, 228 investors decreased positions by around 28,247,356 shares, while 56 investors held positions by with 318,981,165 shares. The mentioned changes placed institutional holdings at 379,821,400 shares, according to the latest SEC report filing. NOV stock had 45 new institutional investments in for a total of 4,755,856 shares, while 60 institutional investors sold positions of 3,739,858 shares during the same period.