Nabors Industries Shares Surge 6.9% Amid Analyst Upgrades

Shares of Nabors Industries Ltd. (NYSE: NBR) experienced a notable increase of 6.9% on Wednesday, closing at $53.55 after reaching a high of $53.63 during trading. Approximately 238,092 shares exchanged hands, marking a significant decline of 48% from the average daily trading volume of 455,264 shares. The stock had previously closed at $50.08.

Analysts have weighed in on the recent performance of Nabors Industries. On November 3, Citigroup reissued a “neutral” rating with a revised price target of $58.00, up from $38.00. Following suit, the Royal Bank of Canada established a price objective of $66.00 and assigned a “sector perform” rating in a report dated October 30. Additionally, Susquehanna reiterated a “neutral” rating with a target price of $56.00 on the same date. Meanwhile, Barclays downgraded its rating to “underweight” but raised its target to $45.00, up from $36.00. Notably, Wall Street Zen upgraded the stock from a “hold” to a “buy” rating on November 16.

As of now, one equity research analyst has given Nabors Industries a Buy rating, four have issued a Hold rating, and three have assigned a Sell rating. According to MarketBeat.com, the stock currently holds a consensus rating of “Reduce” and an average target price of $48.14.

Recent Earnings Report and Financial Health

Nabors Industries reported its latest earnings results on October 28, 2023. The company recorded a loss of ($3.67) earnings per share (EPS), which fell short of analysts’ expectations of ($2.37) by ($1.30). However, the company reported revenues of $825.51 million for the quarter, slightly exceeding the consensus estimate of $824.61 million.

Despite the loss, Nabors Industries showed an 11.8% increase in quarterly revenue compared to the same period last year, when it reported ($6.86) EPS. Analysts predict that the company will post an average EPS of (6.22) for the current fiscal year.

Insider Transactions and Institutional Movements

In related news, Varde Partners Inc., a major shareholder, sold 312,378 shares on September 11, at an average price of $41.04, totaling approximately $12.82 million. Following this transaction, the firm retains 1,406,052 shares, valued at around $57.70 million. This sale represents an 18.18% reduction in their ownership stake. The transaction was disclosed in a filing with the U.S. Securities and Exchange Commission (SEC).

Recent institutional activity also highlights changing dynamics in Nabors Industries’ stock. Coldstream Capital Management Inc. acquired a new stake worth $479,000 during the third quarter, while Voleon Capital Management LP invested approximately $270,000. Additionally, Verition Fund Management LLC secured a new position valued at $421,000.

Furthermore, Susquehanna Advisors Group Inc. increased its stake by 3.4%, now owning 102,136 shares worth $4.17 million after acquiring an additional 3,383 shares. The Public Employees Retirement System of Ohio also raised its holdings by 23.0%, owning 1,545 shares valued at approximately $63,000. Overall, institutional investors and hedge funds now control 81.92% of the company’s stock.

Nabors Industries provides drilling and drilling-related services for both land-based and offshore oil and natural gas wells in the United States and internationally. The company operates through four segments: U.S. Drilling, International Drilling, Drilling Solutions, and Rig Technologies.