Zacks Investment Research upgraded shares of Dril-Quip (NYSE:DRQ) from a strong sell rating to a hold rating in a research note published on Monday, Zacks.com reports. They currently have $28.00 price objective on the oil and gas company’s stock.
According to Zacks, “Dril-Quip manufactures highly engineered equipment employed by explorers in onshore and offshore resources. These are specifically utilized for drilling in deepwater and harsh environmental conditions. The company expects to record product bookings of $40-$60 million per quarter for 2021. It expects the figures to increase in the second half of the year from first-half levels. Notably, the company’s balance sheet is free of debt load, which highlights a sound financial position. However, conservative spending from upstream companies is leading to lower demand for Dril-Quip’s equipment. The company is witnessing a declining trend for its backlog, which is concerning. Also, the company's revenues for 2021 are expected to be a bit lower than the 2020 level of $365 million, despite the recovery witnessed in energy demand from last year.”
A number of other analysts have also recently weighed in on DRQ. Seaport Res Ptn reiterated a neutral rating on shares of Dril-Quip in a research report on Thursday, July 15th. Seaport Global Securities started coverage on Dril-Quip in a research note on Thursday, July 15th. They set a neutral rating and a $30.23 price target on the stock. One equities research analyst has rated the stock with a sell rating and five have issued a hold rating to the company’s stock. According to data from MarketBeat, Dril-Quip currently has an average rating of Hold and a consensus target price of $28.31.
Dril-Quip (NYSE:DRQ) last released its quarterly earnings data on Thursday, July 29th. The oil and gas company reported ($0.53) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.45). Dril-Quip had a negative net margin of 14.78% and a negative return on equity of 2.30%. The firm had revenue of $80.80 million for the quarter, compared to the consensus estimate of $88.25 million. During the same quarter in the prior year, the firm posted ($0.28) earnings per share. Analysts anticipate that Dril-Quip will post -1.17 earnings per share for the current year.
In other Dril-Quip news, VP James C. Webster sold 5,000 shares of the stock in a transaction dated Friday, October 1st. The stock was sold at an average price of $25.99, for a total value of $129,950.00. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 1.79% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in DRQ. Swiss National Bank lifted its stake in Dril-Quip by 0.9% in the first quarter. Swiss National Bank now owns 80,200 shares of the oil and gas company’s stock valued at $2,665,000 after buying an additional 700 shares during the period. BlackRock Inc. lifted its stake in Dril-Quip by 8.9% in the first quarter. BlackRock Inc. now owns 5,997,274 shares of the oil and gas company’s stock valued at $199,288,000 after buying an additional 490,608 shares during the period. Principal Financial Group Inc. lifted its stake in Dril-Quip by 1.4% in the first quarter. Principal Financial Group Inc. now owns 265,315 shares of the oil and gas company’s stock valued at $8,816,000 after buying an additional 3,748 shares during the period. Mercer Global Advisors Inc. ADV acquired a new position in Dril-Quip in the first quarter valued at about $215,000. Finally, UBS Group AG increased its holdings in shares of Dril-Quip by 9,173.5% in the first quarter. UBS Group AG now owns 30,139 shares of the oil and gas company’s stock worth $1,002,000 after acquiring an additional 29,814 shares in the last quarter.
Dril-Quip Company Profile
Dril-Quip, Inc designs, manufactures, sells and services engineered offshore drilling and production equipment. It operates through the following geographical segments: Western Hemisphere, Eastern Hemisphere, and Asia-Pacific. Its products include specialty casing connectors, mudline suspension equipment, downhole tools, capital drilling equipment, control systems, and dry tree systems.
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