Weatherford International (NYSE:WFT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Sunday.
According to Zacks, “Weatherford International Ltd.’s price chart underperformed the broader market indices over the last year. The company’s debt-heavy balance sheet and inadequate cash balances are other concerns. The debt increased by nearly 30% during 2016 with little sign of reduction during the 2017 so far. Further, cash balance plunged by over 43% so far this year. This reflects the weakness of its balance sheet. Moreover, the credit ratings of the company’s bonds were downgraded by multiple credit rating agencies in 2016. Given high debt load and weak credit ratings we think that Weatherford might face difficulties in generating debt capital for financing future growth projects. Volatile gas prices also remain a drag. Under these headwinds, we expect shares of Weatherford to be under pressure in the near future.”
Several other analysts also recently weighed in on the company. Morgan Stanley decreased their price objective on Weatherford International from $5.50 to $5.00 and set an “overweight” rating for the company in a report on Thursday, November 2nd. Sanford C. Bernstein upgraded shares of Weatherford International from a “market perform” rating to an “outperform” rating in a report on Friday, November 3rd. Citigroup downgraded shares of Weatherford International from a “buy” rating to a “neutral” rating and set a $4.20 target price for the company. in a report on Monday, November 6th. Jefferies Group set a $5.00 target price on shares of Weatherford International and gave the stock a “hold” rating in a report on Thursday, October 5th. Finally, Royal Bank of Canada set a $5.00 target price on shares of Weatherford International and gave the stock a “buy” rating in a report on Thursday, December 21st. Five equities research analysts have rated the stock with a sell rating, four have issued a hold rating, nineteen have issued a buy rating and one has assigned a strong buy rating to the company. The company currently has an average rating of “Buy” and an average target price of $5.77.
Shares of Weatherford International (NYSE WFT) opened at $4.31 on Friday. The company has a quick ratio of 1.33, a current ratio of 2.04 and a debt-to-equity ratio of 5.44. The firm has a market capitalization of $4,020.00, a PE ratio of -3.01 and a beta of 2.32. Weatherford International has a fifty-two week low of $3.08 and a fifty-two week high of $7.09.
Weatherford International (NYSE:WFT) last released its quarterly earnings data on Wednesday, November 1st. The oil and gas company reported ($0.22) earnings per share for the quarter, beating the consensus estimate of ($0.24) by $0.02. The firm had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.49 billion. Weatherford International had a negative return on equity of 67.44% and a negative net margin of 25.36%. The firm’s quarterly revenue was up 7.1% on a year-over-year basis. During the same period in the previous year, the company posted ($0.39) earnings per share. research analysts anticipate that Weatherford International will post -1.02 EPS for the current fiscal year.
In other news, VP Douglas M. Mills sold 15,223 shares of the business’s stock in a transaction dated Thursday, January 18th. The stock was sold at an average price of $4.07, for a total transaction of $61,957.61. Following the sale, the vice president now owns 256,402 shares in the company, valued at $1,043,556.14. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Douglas M. Mills sold 7,500 shares of the business’s stock in a transaction dated Wednesday, December 20th. The stock was sold at an average price of $3.75, for a total value of $28,125.00. Following the sale, the vice president now owns 271,625 shares in the company, valued at approximately $1,018,593.75. The disclosure for this sale can be found here. 1.16% of the stock is currently owned by insiders.
Hedge funds have recently modified their holdings of the company. Quantitative Systematic Strategies LLC purchased a new stake in shares of Weatherford International during the third quarter worth about $123,000. Private Advisor Group LLC grew its stake in shares of Weatherford International by 63.2% during the second quarter. Private Advisor Group LLC now owns 39,207 shares of the oil and gas company’s stock worth $146,000 after acquiring an additional 15,178 shares during the last quarter. CIBC World Markets Inc. purchased a new stake in shares of Weatherford International during the second quarter worth about $161,000. Balentine LLC grew its stake in shares of Weatherford International by 68.5% during the third quarter. Balentine LLC now owns 36,706 shares of the oil and gas company’s stock worth $168,000 after acquiring an additional 14,922 shares during the last quarter. Finally, Toronto Dominion Bank grew its stake in shares of Weatherford International by 244.5% during the third quarter. Toronto Dominion Bank now owns 39,550 shares of the oil and gas company’s stock worth $181,000 after acquiring an additional 28,070 shares during the last quarter.
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About Weatherford International
Weatherford International Ltd. (Weatherford) is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 90 countries and has a network of approximately 860 locations, including manufacturing, service, research and development, and training facilities and employs approximately 29,500 people.
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