David D. Harrison, a director at NOV Inc. (NYSE:NOV), recently sold a portion of his holdings in the company. According to an SEC filing, Harrison sold 1,784 shares of common stock on November 20, 2024, at a price of $16.10 per share. The total value of the transaction amounted to $28,722. Following this sale, Harrison retains ownership of 110,951 shares in the company.
In other recent news, NOV Inc. has experienced some notable changes. The company has seen its stock rating downgraded from "Buy" to "Neutral" by Citi, which also lowered its price target from $21.00 to $18.00. This comes in response to a global drilling slowdown and potential challenges to NOV's business. TD Cowen and JPMorgan have also revised their stock targets due to NOV's Q4 guidance and future outlook, with Cowen maintaining a Buy rating and JPMorgan keeping an Overweight rating.
NOV reported strong Q3 results, with revenue of $2.19 billion, a net income of $130 million, and earnings of $0.33 per diluted share. Despite expectations of modestly weaker demand for drilling equipment into early 2025, recent developments indicate potential for revenue growth. The company's backlog reached $4.5 billion, the highest in over five years, signaling potential future growth.
In light of these recent developments, NOV returned $109 million to shareholders through share repurchases and dividends, demonstrating its commitment to shareholder value. Despite a downturn in short-cycle product demand, optimism surrounds the long-term demand for oil and natural gas, largely due to investments in deepwater projects and technological advancements in North America.
InvestingPro Insights
In light of David D. Harrison's recent sale of NOV Inc. shares, it's worth examining some key financial metrics and insights provided by InvestingPro. NOV Inc. currently has a market capitalization of $6.45 billion, with a price-to-earnings (P/E) ratio of 6.07, suggesting the stock may be undervalued relative to its earnings.
InvestingPro data reveals that NOV's revenue for the last twelve months as of Q3 2024 stood at $8.905 billion, with a revenue growth of 7.12% over the same period. The company's profitability is evident, with a gross profit of $1.893 billion and an operating income of $750 million for the same timeframe.
An InvestingPro Tip highlights that NOV has maintained dividend payments for 16 consecutive years, which may be of interest to income-focused investors. The current dividend yield is 1.85%, with a notable dividend growth of 50% over the last twelve months.
Another relevant InvestingPro Tip indicates that the stock generally trades with low price volatility, which could be appealing to risk-averse investors or those seeking stability in their portfolio.
For readers interested in a more comprehensive analysis, InvestingPro offers 5 additional tips for NOV Inc., providing a deeper understanding of the company's financial health and market position.
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