Zacks Investment Research downgraded shares of Noble (NYSE:NE) from a hold rating to a sell rating in a report released on Tuesday morning.
According to Zacks, “In this depressed pricing market, Noble Corporation faces uncertainty over its new contract flows and the dayrates. Oversupply of rigs is another major concern at a time when all contractors are cutting on their expenses. Additionally, the currently challenged offshore drilling space limits any potential upside. The recent early termination of rig contracts as well as cold stacking of rigs is likely to impact the company’s contract drilling revenues and costs going forward. The company’s high level of debt is a concern. Noble is also facing pressure on top line as its total revenues declined at a CAGR of 15.6% over the past three years (2014–2016).”
Several other equities research analysts have also weighed in on the company. Royal Bank of Canada set a $5.00 price objective on Noble and gave the company a hold rating in a research note on Thursday, December 21st. ValuEngine lowered Noble from a sell rating to a strong sell rating in a research report on Friday, December 1st. Piper Jaffray Companies restated a hold rating and set a $2.85 price target on shares of Noble in a research report on Sunday, October 22nd. Deutsche Bank started coverage on Noble in a research report on Tuesday, October 10th. They set a hold rating and a $4.00 price target on the stock. Finally, started coverage on Noble in a research report on Thursday, October 19th. They set a buy rating and a $5.30 price target on the stock. Eight analysts have rated the stock with a sell rating, sixteen have assigned a hold rating and four have issued a buy rating to the company. The company has a consensus rating of Hold and an average target price of $5.41.
Noble (NE) traded up $0.10 during mid-day trading on Tuesday, hitting $5.10. The stock had a trading volume of 10,186,736 shares, compared to its average volume of 7,876,450. Noble has a 52 week low of $3.14 and a 52 week high of $7.76. The company has a market cap of $1,224.84, a price-to-earnings ratio of -0.69 and a beta of 2.34. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.58 and a current ratio of 1.58.
Noble (NYSE:NE) last released its quarterly earnings data on Thursday, November 2nd. The oil and gas company reported ($0.36) earnings per share for the quarter, meeting the consensus estimate of ($0.36). Noble had a negative return on equity of 3.94% and a negative net margin of 136.22%. The company had revenue of $266.20 million for the quarter, compared to analyst estimates of $269.61 million. During the same period in the prior year, the company posted ($0.23) EPS. The company’s revenue was down 30.9% compared to the same quarter last year. research analysts expect that Noble will post -1.18 earnings per share for the current fiscal year.
Large investors have recently bought and sold shares of the business. Cubist Systematic Strategies LLC acquired a new position in Noble during the 3rd quarter worth $102,000. Pinebridge Investments L.P. acquired a new position in shares of Noble in the 2nd quarter valued at $117,000. BlueCrest Capital Management Ltd lifted its stake in shares of Noble by 179.0% in the 2nd quarter. BlueCrest Capital Management Ltd now owns 42,652 shares of the oil and gas company’s stock valued at $154,000 after purchasing an additional 27,365 shares during the period. Sanders Morris Harris LLC acquired a new position in shares of Noble in the 3rd quarter valued at $161,000. Finally, ProShare Advisors LLC lifted its stake in shares of Noble by 9.1% in the 2nd quarter. ProShare Advisors LLC now owns 48,685 shares of the oil and gas company’s stock valued at $176,000 after purchasing an additional 4,047 shares during the period. 86.98% of the stock is currently owned by hedge funds and other institutional investors.
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Noble Corporation is an offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 79 mobile offshore drilling units and one floating production storage and offloading unit (NYSE:NE) located globally.
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