Zacks Investment Research cut shares of Dril-Quip (NYSE:DRQ) from a hold rating to a sell rating in a research report sent to investors on Wednesday, January 3rd.
According to Zacks, “Dril-Quip’s stock showed significant pricing weaknesses over the last one year. During the aforesaid period, the company’s shares slipped 21.2%, whereas the broader industry lost 19.6%. Dril-Quip is also facing pressure on top line. Over the past three years (2014–2016), total revenues declined at a CAGR of 23.9%. Lower oil prices than mid-2014 may also hinder the company’s earnings potential. This is because weak crude may lead to lower exploration and production activities, in turn, limiting contracts for the Oil Field Machinery & Equipment industry. Other company-specific risks include new product growth challenges, potential backlog losses and high dependence on its top customers. Additionally, delays in deepwater infrastructure awards may also hinder the company’s growth prospects.”
Other equities research analysts also recently issued research reports about the stock. TheStreet downgraded shares of Dril-Quip from a c rating to a d+ rating in a research note on Friday, October 27th. FBR & Co reaffirmed a buy rating on shares of Dril-Quip in a research note on Friday, October 27th. Wolfe Research raised shares of Dril-Quip from an underperform rating to a market perform rating in a research note on Tuesday, October 31st. Piper Jaffray Companies reaffirmed a hold rating and set a $38.00 price target on shares of Dril-Quip in a research note on Friday, November 10th. Finally, ValuEngine downgraded shares of Dril-Quip from a hold rating to a sell rating in a research note on Sunday, December 31st. Three analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have given a buy rating to the company. The stock has a consensus rating of Hold and a consensus target price of $49.43.
Dril-Quip (NYSE:DRQ) traded up $1.45 during mid-day trading on Wednesday, hitting $55.65. 514,800 shares of the stock traded hands, compared to its average volume of 670,912. Dril-Quip has a 1 year low of $35.85 and a 1 year high of $67.95. The stock has a market capitalization of $2,130.00, a P/E ratio of -75.20 and a beta of 0.74.
Dril-Quip (NYSE:DRQ) last released its earnings results on Friday, October 27th. The oil and gas company reported $0.05 EPS for the quarter, topping the consensus estimate of ($0.01) by $0.06. Dril-Quip had a negative net margin of 6.14% and a positive return on equity of 1.19%. The firm had revenue of $100.35 million for the quarter, compared to the consensus estimate of $106.74 million. During the same quarter in the previous year, the firm earned $0.63 earnings per share. The company’s quarterly revenue was down 18.8% compared to the same quarter last year. analysts anticipate that Dril-Quip will post 0.21 earnings per share for the current fiscal year.
In other Dril-Quip news, VP James C. Webster sold 4,890 shares of the business’s stock in a transaction on Monday, October 30th. The shares were sold at an average price of $41.49, for a total transaction of $202,886.10. Following the transaction, the vice president now owns 34,947 shares in the company, valued at $1,449,951.03. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Blake T. Deberry sold 14,819 shares of the company’s stock in a transaction dated Monday, October 30th. The stock was sold at an average price of $41.49, for a total transaction of $614,840.31. Following the completion of the transaction, the insider now owns 113,175 shares in the company, valued at $4,695,630.75. The disclosure for this sale can be found here. Insiders have sold 45,662 shares of company stock worth $1,927,019 in the last quarter. Company insiders own 0.87% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Riverhead Capital Management LLC grew its holdings in shares of Dril-Quip by 66.4% in the second quarter. Riverhead Capital Management LLC now owns 2,663 shares of the oil and gas company’s stock worth $130,000 after purchasing an additional 1,063 shares during the last quarter. Quantbot Technologies LP bought a new position in shares of Dril-Quip in the third quarter worth about $136,000. QS Investors LLC grew its holdings in shares of Dril-Quip by 0.5% in the second quarter. QS Investors LLC now owns 2,813 shares of the oil and gas company’s stock worth $137,000 after purchasing an additional 13 shares during the last quarter. Flinton Capital Management LLC grew its holdings in shares of Dril-Quip by 64.8% in the second quarter. Flinton Capital Management LLC now owns 4,060 shares of the oil and gas company’s stock worth $198,000 after purchasing an additional 1,596 shares during the last quarter. Finally, Symons Capital Management Inc. purchased a new stake in Dril-Quip in the third quarter worth about $232,000.
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Dril-Quip Company Profile
Dril-Quip, Inc (Dril-Quip) designs, manufactures, sells and services engineered drilling and production equipment. The Company’s operations are organized into three geographic segments: Western Hemisphere, including North and South America, headquartered in Houston, Texas; Eastern Hemisphere, including Europe and Africa, headquartered in Aberdeen, Scotland, and Asia-Pacific, including the Pacific Rim, Southeast Asia, Australia, India and the Middle East, headquartered in Singapore.
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