NOV (NYSE:NOV) Hits New 12-Month Low - Is It Time to Sell?

NOV Inc. (NYSE:NOV) saw its stock price drop to a new 52-week low on Friday, reaching as low as $14.98 before closing at $14.99, with a trading volume of 1,166,767 shares. This was a drop from its previous close of $15.57.

Wall Street Analysts Discuss Future Growth

Analysts have weighed in on NOV recently, providing varying perspectives on its stock. On October 28, Susquehanna adjusted its target price for NOV from $22.00 to $21.00 while maintaining a "positive" rating. Bank of America also revised its price target down from $22.00 to $20.00, sustaining a "buy" rating on October 14. Barclays decreased their target price from $17.00 to $16.00, assigning an "underweight" rating in a report on October 29. Moreover, Wells Fargo lowered their price objective from $16.00 to $15.00 and assigned an "underweight" rating on November 4. Lastly, BMO Capital Markets revised their target price down to $20.00 from $22.00, maintaining a "market perform" rating. Among analysts, there are two sell ratings, six hold ratings, eight buy ratings, and one strong buy, leading to an average rating of "Hold" with a target price averaging $21.64 as per MarketBeat.com.

NOV's Stock Performance Metrics

NOV's market capitalization stands at approximately $5.84 billion. It has a price-to-earnings (P/E) ratio of 5.56, showing a price-to-earnings growth (PEG) ratio of 0.94. The company exhibits a beta of 1.66, indicating higher volatility compared to the market. NOV's current ratio is at 2.57, indicating healthy liquidity, along with a quick ratio of 1.65 and a debt-to-equity ratio of 0.26. The firm has a 50-day moving average of $15.97 and a 200-day moving average of $17.26.

NOV's Quarterly Dividend Announcement

NOV has also recently announced a quarterly dividend of $0.075 per share, which will be paid on December 20, 2023. Shareholders who are on record as of December 6, 2023, will receive this dividend, translating to an annualized dividend of $0.30 and a yield of 2.00%. The ex-dividend date is set for December 6, 2023. The company's payout ratio currently stands at 11.07%, suggesting a modest dividend compared to its earnings.

Insider Trading Activity

In related news, Director David D. Harrison sold 1,784 shares of NOV stock on November 20, at an average price of $16.10, totaling $28,722.40. Following this transaction, he retains ownership of 110,951 shares valued at approximately $1,786,311.10. This sale represented a 1.58% reduction in his stake. Insider ownership of NOV is about 1.85%, indicating that most shares are held by institutional investors.

Institutional Investor Movements

Recent movements show that large investors are actively changing their stakes in NOV. Rothschild Investment LLC, for example, acquired a new stake worth about $28,000 in the second quarter, while Quarry LP purchased a stake of roughly $36,000 in the third quarter. Another notable acquisition was made by American National Bank & Trust, who bought in at approximately $39,000 during the same quarter. International Assets Investment Management LLC significantly increased their position by 1,590.1% during the third quarter, now holding 2,907 shares valued around $46,000 after acquiring an additional 2,735 shares. Also, Brooklyn Investment Group invested about $48,000 in NOV during the third quarter. Currently, institutional investors collectively own 93.27% of NOV's stock.

About NOV Inc.

NOV Inc. specializes in the design, manufacturing, and sale of systems, components, and products utilized in oil and gas drilling and production, as well as in industrial and renewable energy sectors, both domestically and internationally. The company operates through two segments: Energy Equipment and Energy Products and Services, offering a range of services including solids control, waste management, drilling optimization services, and more.

Conclusion: Should You Sell NOV Stocks?

Currently, there is a significant debate among analysts and investors about the future performance of NOV. Given the recent drop in stock prices and mixed ratings from experts, potential investors or current shareholders need to weigh their options carefully before making selling decisions.

Stocks, Investment, NOV