Why Did Schlumberger Limited (SLB) Investors Go Insane?

Schlumberger Limited (SLB) will probably climb 37.25 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $90-month high price target. This represents a whopping 115.62 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $58, which represents a return potential of 38.96 percent when compared to the closing price of the stock of $41.74 on Friday, January 11. The lowest price target for the stock is $42 — slightly more than 0.62 percent from SLB’s current share price.

The stock is currently hovering around the first support level of $41.03. Below this, the next support is placed in the zone of $40.32. Till the time, the SLB stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 55.61 on daily chart, which may remain a cause for concern. If the price breaks below $40.32 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $42.11 mark may result into a pull-back move towards $42.48 level.

On 11th of January, Schlumberger Limited (NYSE:SLB) shares ended higher after a volatile session. The shares accumulated 0.09 points or 0.22 percent at $41.74 with a light trade volume of 13.329 million shares. After opening the session at $41.11, the shares went as high as $41.77 and as low as $40.69, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $57.8 billion and now has 1.39 billion shares outstanding. Schlumberger Limited (SLB) stock has gained 1.21 percent of market value in 21 trading days.

SLB stock has a trailing 3-year beta of 1.29, 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 -$0.42 a share in the trailing twelve months. The stock’s value has surged 15.69 percent year to date (YTD) against a decline of -44.79 percent in 12 month’s time. The company’s shares still trade -48.05 percent away from its 1-year high of $80.35 and 19.29 percent up from 52-week low of $34.99. The average consensus rating on the company is 2.2, 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 Schlumberger Limited (SLB) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry SLB operates in has an average P/E of 12.25. Its P/E ratio went as low as 17.66X and as high as 42.92 over the 5-year span. Further, it is sporting a 1.76 on the Price-to-Sales ratio. Compare this with the industry average P/S of 19.65. 13.2 percent is the gross profit margin for Schlumberger Limited and operating margin sits at 0.6 percent. Along with this, the net profit margin is -2 percent.

Let’s take a look at some insider activity at Schlumberger Limited (NYSE:SLB) and see the pattern. The earliest insider trade took place on 12/20/2018. Schorn Patrick gathered a total of 10 thousand shares of company at average share price of $37.55. The total for the purchase was set at $375.5 thousand. After this transaction, the EVP Wells account balance stood at 35 thousand shares. The stock grew 11.16 percent since that insider purchase. On 10/30/2018, Ayat Simon, CFO, sold 60 thousand shares at a price per share of $56.6. This removed 3.4 million shares from the insider’s fortune and the stock saw a -26.25 percent retreat in value since the news became public. This transaction left 204.01 thousand shares in the CFO account.

On 09/06/2018, Director Marks Michael E performed a purchase transaction worth $482.48 thousand. This purchase at $60.31 each has added 8 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -30.79 percent decrease since the transaction was reported. The insider now is left with 68.02 thousand shares remaining in the account. Jaramillo Claudia, who performs the VP, Treasurer job, sold 3 thousand shares for $218.04 thousand. The disposal occurred on 05/16/2018 was priced at $72.68 per share. The share price plunged -42.57 percent since the reporting date. Jaramillo Claudia now left with a stake of 3.16 thousand SLB stock worth $131.98 thousand after the insider selling.