Dodge & Cox Reduces Stake in SLB Limited Amid Market Adjustments

Dodge & Cox has decreased its investment in SLB Limited (NYSE: SLB) by 6.8% during the second quarter of 2023, as reported in a recent filing with the Securities and Exchange Commission (SEC). The investment management firm now holds 566,284 shares of the oil and gas company after selling 41,125 shares. This reduction brings the total value of Dodge & Cox’s holdings in SLB to approximately $19.14 million.

Several other institutional investors have also adjusted their positions in SLB. Twin Peaks Wealth Advisors LLC established a new stake in the company during the second quarter, valued at around $25,000. Atlas Capital Advisors Inc. and Atticus Wealth Management LLC similarly acquired new positions in the first and second quarters, worth approximately $33,000 and $29,000, respectively. Notably, Thurston Springer Miller Herd & Titak Inc. increased its stake by 55.3% during the same period, holding 983 shares worth about $33,000 after purchasing an additional 350 shares. Additionally, NewSquare Capital LLC grew its position by 51.4%, now owning 1,004 shares worth approximately $34,000. Institutional investors collectively own 81.99% of SLB’s stock.

In related transactions, Chief Financial Officer Stephane Biguet sold 38,447 shares on November 13, 2023, at an average price of $36.75, totaling $1.41 million. Following this sale, his remaining shares are valued at approximately $6.46 million, marking a 17.95% decrease in his holdings. Similarly, insider Dianne B. Ralston sold 39,727 shares on September 12, 2023, for about $1.43 million. After this transaction, Ralston holds 202,201 shares, valued at approximately $7.30 million. Over the past 90 days, insiders have sold a total of 143,674 shares valued at approximately $5.30 million, while corporate insiders retain only 0.22% of the company’s stock.

Market Performance and Analyst Insights

SLB’s stock opened at $38.50 on the latest trading day. The company’s fifty-day moving average stands at $35.41, with a two-hundred-day moving average of $34.94. SLB Limited has experienced a 52-week low of $31.11 and a 52-week high of $44.66. The firm maintains a market capitalization of $57.52 billion, a price-to-earnings (P/E) ratio of 14.86, and a beta of 0.73.

On October 17, 2023, SLB announced its quarterly earnings, reporting $0.69 earnings per share, surpassing analysts’ expectations of $0.67 by $0.02. The company recorded a net margin of 10.34% and a return on equity of 18.97%. Revenue for the quarter was $8.93 billion, slightly below the anticipated $8.99 billion, and down 2.5% year-over-year.

Upcoming Dividend Announcement

SLB has also declared a quarterly dividend of $0.285, set to be paid on January 8, 2024. Shareholders of record on December 3, 2023 will receive this dividend, which translates to an annualized dividend of $1.14 and a dividend yield of 3.0%. The company’s dividend payout ratio is currently 44.02%.

SLB Limited operates globally in the energy sector, providing technology and services across four primary divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The company specializes in various aspects of energy production, including field development, hydrocarbon production, and carbon management.