Weatherford International plc (WFT) Stock Might Be Overheated

Analysts are forecasting revenue to suffer decline of -3.7 percent to $1.43B in the next fiscal quarter, while earnings are seen soaring by nearly -63.64 percent to -$0.12 per share. History has shown that shares in Weatherford International plc have gone up on 24 different earnings reaction days and are predicted to add 0.06 percent when the company reports upcoming earnings. In last reported earnings results, it earned -$0.1 per share, better than the -$0.13, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.44B, worse than the $1.52B analysts expected. Earnings are estimated to increase by 24.3 percent this year, 55.4 percent next year and continue to increase by 0 percent annually for the next 5 years.

Weatherford International plc (WFT) will probably climb 342.59 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $6-month high price target. This represents a whopping 1011.11 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $2, which represents a return potential of 270.37 percent when compared to the closing price of the stock of $0.54 on Friday, January 11. The lowest price target for the stock is $0.1 — slightly more than -81.48 percent from WFT’s current share price.

The stock is currently hovering around the first support level of $0.52. Below this, the next support is placed in the zone of $0.51. Till the time, the WFT stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 50.43 on daily chart, which may remain a cause for concern. If the price breaks below $0.51 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $0.55 mark may result into a pull-back move towards $0.57 level.

On 11th of January, Weatherford International plc (NYSE:WFT) shares ended lower after a volatile session. The shares dropped -0.01 points or -1.5 percent at $0.54 with a light trade volume of 20.058 million shares. After opening the session at $0.5259, the shares went as high as $0.547 and as low as $0.52, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $548 million and now has 1.02 billion shares outstanding. Weatherford International plc (WFT) stock has gained 19.65 percent of market value in 21 trading days.

WFT stock has a trailing 3-year beta of 2.28, 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 -$2.72 a share in the trailing twelve months. The stock’s value has fallen -3.47 percent year to date (YTD) against a decline of -86.84 percent in 12 month’s time. The company’s shares still trade -87.76 percent away from its 1-year high of $4.41 and 149.35 percent up from 52-week low of $0.22. 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 Weatherford International plc (WFT) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry WFT operates in has an average P/E of 128.83. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 0.09 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.32. 19.2 percent is the gross profit margin for Weatherford International plc and operating margin sits at -32.7 percent. Along with this, the net profit margin is -45.6 percent.

Let’s take a look at some insider activity at Weatherford International plc (NYSE:WFT) and see the pattern. The earliest insider trade took place on 09/17/2018. Minas Angela A gathered a total of 40 thousand shares of company at average share price of $2.45. The total for the purchase was set at $98 thousand. After this transaction, the Director account balance stood at 102.71 thousand shares. The stock lost -77.96 percent since that insider purchase. On 08/24/2018, Macaulay William E, Director, sold 767.59 thousand shares at a price per share of $2.86. This removed 2.2 million shares from the insider’s fortune and the stock saw a -81.12 percent retreat in value since the news became public. This transaction left 399.44 thousand shares in the Director account.

On 01/29/2018, VP & Chief Accounting Officer Mills Douglas M. performed a sale transaction worth $25.75 thousand. This sale at $4.24 each has eliminated 6.07 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -87.26 percent decrease since the transaction was reported. The insider now is left with 234.53 thousand shares remaining in the account. Mills Douglas M., who performs the VP & Chief Accounting Officer job, sold 17.93 thousand shares for $77.82 thousand. The disposal occurred on 01/24/2018 was priced at $4.34 per share. The share price plunged -87.56 percent since the reporting date. Mills Douglas M. now left with a stake of 238.47 thousand WFT stock worth $128.77 thousand after the insider selling.