Dril-Quip (NYSE:DRQ) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Friday, November 10th.
According to Zacks, “We view Dril-Quip as an attractive long-term investment based on its highly engineered offshore drilling and production equipment for deepwater severe-service applications and harsh environmental conditions. Also, the equipment supplier is also in excellent financial health with a sustainable free cash flow. Dril-Quip’s technically differentiated products and best-in-class margins make it an attractive investment. The company’s earnings surprise history is impressive. Dril-Quip beat the Zacks Consensus Estimate in three of the last four quarters with an average earnings surprise of 300.47%. However, the company’s price chart shows that it has lagged the broader industry year to date. During the aforesaid period, the company’s shares lost 23%, while the industry decreased 19.4%. Dril-Quip is also facing pressure on top line. Over the past three years (2014–2016), total revenues declined at a CAGR of 23.9%.”
DRQ has been the topic of several other research reports. BidaskClub lowered Dril-Quip from a “sell” rating to a “strong sell” rating in a research note on Thursday, August 10th. TheStreet lowered Dril-Quip from a “c” rating to a “d+” rating in a research note on Friday, October 27th. FBR & Co reiterated a “buy” rating on shares of Dril-Quip in a research note on Friday, October 27th. Piper Jaffray Companies set a $43.00 price target on Dril-Quip and gave the company a “hold” rating in a research note on Saturday, July 29th. Finally, Wolfe Research upgraded Dril-Quip from an “underperform” rating to a “market perform” rating in a research note on Tuesday, October 31st. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and two have issued a buy rating to the company’s stock. Dril-Quip presently has a consensus rating of “Hold” and a consensus price target of $48.57.
Dril-Quip (NYSE:DRQ) last posted its quarterly earnings data on Friday, October 27th. The oil and gas company reported $0.05 EPS for the quarter, topping the Zacks’ consensus estimate of ($0.01) by $0.06. Dril-Quip had a positive return on equity of 1.19% and a negative net margin of 6.14%. The firm had revenue of $100.35 million for the quarter, compared to analyst estimates of $106.74 million. During the same quarter last year, the company earned $0.63 EPS. The company’s revenue was down 18.8% on a year-over-year basis. equities analysts anticipate that Dril-Quip will post 0.18 earnings per share for the current year.
In other Dril-Quip news, Director A P. Shukis sold 613 shares of Dril-Quip stock in a transaction dated Tuesday, October 31st. The stock was sold at an average price of $42.80, for a total transaction of $26,236.40. Following the transaction, the director now directly owns 12,282 shares of the company’s stock, valued at approximately $525,669.60. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP James C. Webster sold 4,890 shares of Dril-Quip stock in a transaction dated Monday, October 30th. The stock was sold at an average price of $41.49, for a total value of $202,886.10. Following the transaction, the vice president now directly owns 34,947 shares in the company, valued at $1,449,951.03. The disclosure for this sale can be found here. Insiders have sold a total of 47,662 shares of company stock worth $2,013,999 in the last 90 days. 0.87% of the stock is currently owned by corporate insiders.
Large investors have recently made changes to their positions in the company. Riverhead Capital Management LLC lifted its stake in shares of Dril-Quip by 66.4% in the 2nd quarter. Riverhead Capital Management LLC now owns 2,663 shares of the oil and gas company’s stock valued at $130,000 after purchasing an additional 1,063 shares during the period. Quantbot Technologies LP acquired a new position in shares of Dril-Quip in the 3rd quarter valued at about $136,000. QS Investors LLC lifted its stake in shares of Dril-Quip by 0.5% in the 2nd quarter. QS Investors LLC now owns 2,813 shares of the oil and gas company’s stock valued at $137,000 after purchasing an additional 13 shares during the period. LS Investment Advisors LLC lifted its stake in shares of Dril-Quip by 17.6% in the 2nd quarter. LS Investment Advisors LLC now owns 3,014 shares of the oil and gas company’s stock valued at $147,000 after purchasing an additional 450 shares during the period. Finally, Flinton Capital Management LLC lifted its stake in shares of Dril-Quip by 64.8% in the 2nd quarter. Flinton Capital Management LLC now owns 4,060 shares of the oil and gas company’s stock valued at $198,000 after purchasing an additional 1,596 shares during the period.
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Dril-Quip, Inc (Dril-Quip) designs, manufactures, sells and services engineered drilling and production equipment. The Company’s operations are organized into three geographic segments: Western Hemisphere, including North and South America, headquartered in Houston, Texas; Eastern Hemisphere, including Europe and Africa, headquartered in Aberdeen, Scotland, and Asia-Pacific, including the Pacific Rim, Southeast Asia, Australia, India and the Middle East, headquartered in Singapore.
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