National Oilwell Varco, Inc. (NOV) Stock Is Worth the Long-Term Chance

Analysts at Tudor Pickering upped their rating on shares of National Oilwell Varco, Inc. (NYSE:NOV) from Hold to Buy in their opinion released on November 05. Evercore ISI analysts bumped their recommendation on NOV stock from In-line to Outperform in a separate flash note to investors on October 29. Analysts at Cowen are sticking to their Market Perform recommendation. However, on October 29, they lifted target price for these shares to $42 from $45. Analysts at Cowen, made their first call for the stock with a Market Perform rating, according to a research note that dated back to October 29.

By watching the trading activity of corporate insiders, it will become easier to get a sense of National Oilwell Varco, Inc. (NYSE:NOV)’s prospects. The earliest insider trade took place on 08/27/2018. Mattson Eric L parted with a total of 11.11 thousand shares of company at average share price of $45.34. The total for the sales was set at $503.82 thousand. After this transaction, the Director account balance stood at 61.03 thousand shares. The stock lost -30.13 percent since that insider sale. On 08/09/2018, Mattson Eric L, Director, sold 4.34 thousand shares at a price per share of $45.65. This removed 198.03 thousand shares from the insider’s fortune and the stock saw a -30.6 percent retreat in value since the news became public. This transaction left 72.15 thousand shares in the Director account. On 08/01/2018, Chairman, President and CEO Williams Clay C performed a sale transaction worth $22.28 million. This sale at $47.91 each has eliminated 465.12 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -33.88 percent decrease since the transaction was reported. The insider now is left with 376.57 thousand shares remaining in the account. Weinstock Craig L., who performs the Sr. VP. & Gen. Counsel job, sold 25 thousand shares for $1.19 million. The disposal occurred on 08/01/2018 was priced at $47.45 per share. The share price plunged -33.23 percent since the reporting date. Weinstock Craig L. now left with a stake of 42.66 thousand NOV stock worth $1.29 million after the insider selling.

National Oilwell Varco, Inc. (NOV) is expected to jump by 36.77 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $52-month high price target. This represents a whopping 71.79 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $40, which represents a return potential of 32.14 percent when compared to the closing price of the stock of $30.27 on Thursday, December 06. The lowest price target for the stock is $23 — slightly more than -24.02 percent from NOV’s current share price.

The shares are currently floating around the first support level of $29.75. Below this, the next support is placed in the zone of $29.24. Till the time, the NOV stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 28.89 on daily chart, which may remain a cause for comfort. If the price breaks below $29.24 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $30.77 mark may result into a pull-back move towards $31.27 level.

NOV shares dropped -1.41 points or -4.45 percent on Thursday to $30.27 with a heavy trade volume of 4.699 million shares. After opening the session at $30.59, the shares went as high as $30.75 and as low as $29.7346, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $11.8 billion and now has 390.77 million shares outstanding. National Oilwell Varco, Inc. (NOV) stock has lost -17.14 percent of market value in 21 trading days.

NOV stock has a trailing 3-year beta of 1.04, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.79 a share in the trailing twelve months. The stock’s value has fallen -15.96 percent year to date (YTD) against a decline of -8.74 percent in 12 month’s time. The company’s shares still trade -38.33 percent away from its 1-year high of $49.08 and -3.29 percent down from 52-week low of $31.30. The average consensus rating on the company is 2.6, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of National Oilwell Varco, Inc. (NOV) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry NOV operates in has an average P/E of 12.25. Its P/E ratio went as low as 11.5X and as high as 14.07 over the 5-year span. Further, it is sporting a 1.47 on the Price-to-Sales ratio. Compare this with the industry average P/S of 19.65. 15 percent is the gross profit margin for National Oilwell Varco, Inc. and operating margin sits at 0.2 percent. Along with this, the net profit margin is -0.7 percent.

NOV will be showing off its Q4 earnings on February 06. Analysts are forecasting revenue to climb 11.8 percent to $2.2B in the next fiscal quarter, while earnings are seen soaring by nearly -350 percent to $0.1 per share. History has shown that shares in National Oilwell Varco, Inc. have gone down on 19 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0 per share, worse than the $0.12, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.15B, worse than the $2.21B analysts expected. Earnings are estimated to increase by 80.2 percent this year, 2733.3 percent next year and continue to increase by 41 percent annually for the next 5 years.