NOV (NYSE:NOV) Hits New 12-Month Low - Should Investors Consider Selling?

NOV Inc. (NYSE:NOV) recently reached a new 52-week low in stock price, trading as low as $14.98 before closing at $14.99 on Friday. The trading volume for the day was 1,166,767 shares, showing active trading interest. Just a day before, the stock had closed higher at $15.57.

Recent Analyst Ratings

Market analysts have been evaluating NOV's stock and its future potential. Susquehanna, one of the research firms, cut its target price for NOV from $22.00 to $21.00, rating the stock as "positive" as of October 28. Bank of America also reduced its target from $22.00 to $20.00, maintaining a "buy" recommendation on October 14. Other firms such as Barclays and Wells Fargo lowered their target prices as well, with Barclays moving from $17.00 to $16.00 and Wells Fargo from $16.00 to $15.00, adopting an "underweight" stance. BMO Capital Markets also adjusted their forecast, reducing their target from $22.00 to $20.00 and giving it a "market perform" rating. Overall, the stock has received mixed ratings: two analysts suggest selling, six recommend holding, eight are buying, and one has a strong buy rating. Current data indicates an average rating of "Hold" among analysts, with an average target price of $21.64.

NOV's Stock Performance Metrics

The company's market capitalization stands at approximately $5.84 billion. Key financial metrics include a price-to-earnings (PE) ratio of 5.56 and a price-to-earnings-growth (PEG) ratio of 0.94. NOV's stock exhibits a beta of 1.66, indicating it's more volatile compared to the market average. For operational liquidity, the firm has a current ratio of 2.57 and a quick ratio of 1.65. Its debt-to-equity ratio sits at a modest 0.26, signifying a healthy balance sheet. Notably, the 50-day moving average of the stock is $15.97, while the 200-day average is $17.26.

Dividend Declaration by NOV

NOV has also recently announced its quarterly dividend. Shareholders who own stocks by December 6 will receive a dividend of $0.075 per share, with the total annualized dividend reaching $0.30. This yields approximately 2.00%. The dividend will be paid out on December 20, and the company's payout ratio stands at 11.07%, which indicates a conservative approach to returning value to shareholders.

Insider Trading Activity

In insider trading news, Director David D. Harrison sold 1,784 shares on November 20, pricing the shares at an average of $16.10, totaling about $28,722.40 in the transaction. Following the sale, he retains 110,951 shares valued at approximately $1.79 million, marking a 1.58% decline in his ownership of the stock. Currently, 1.85% of shares are held by insiders.

Changes in Institutional Ownership

Various large investors have been adjusting their positions in NOV lately. For example, Rothschild Investment LLC acquired a new stake valued at approximately $28,000, while Quarry LP invested about $36,000 in the company during the third quarter. American National Bank & Trust also bought into the stock with a new stake worth around $39,000. Notably, International Assets Investment Management LLC significantly increased their stake by 1,590.1%, owning a total of 2,907 shares valued at $46,000 after acquiring an additional 2,735 shares. Hedge funds and institutional investors collectively own about 93.27% of NOV's stock.

About NOV Inc.

NOV Inc. designs and manufactures various systems and products used in oil and gas drilling, production, as well as in renewable energy sectors both in the United States and internationally. The company operates through two main segments: Energy Equipment and Energy Products and Services. Their offerings include solids control equipment, managed pressure drilling, drilling fluids, and downhole tools among others.

In Summary

As NOV hits a new 12-month low, investors may be questioning whether it's time to sell. While the company is experiencing volatility and a mixed bag of analyst ratings, its strong market capitalization and dividend declaration may provide some reassurance. Investors should weigh analyst opinions, current market conditions, and their own financial positions carefully before making a decision.

Stocks, Market, Investment