Dril-Quip Inc. (DRQ) Upgraded to Hold at Zacks Investment Research
Dril-Quip Inc. (NYSE:DRQ) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “A pure play in the offshore drilling and production market, Dril-Quip's technically differentiated products and best-in-class margins make it an attractive investment. Moreover, Dril-Quip’s plans to acquire downhole equipment specialist TIW Corp. to broaden its product offerings is another positive. A strong balance sheet, significant positive cash flow and an experienced management team are other positives in Dril-Quip’s growth story. However, with oil remaining in a bearish territory, the top energy companies have cut spending (particularly on the costly drilling projects) on the back of lower profit margins. This, in turn, means less work for the beleaguered equipment suppliers like Dril-Quip as offshore exploration for new oil and gas projects has almost come to a standstill. This accounts for our conservative stance on the company.”
Several other equities research analysts also recently weighed in on the stock. JPMorgan Chase & Co. started coverage on shares of Dril-Quip in a research note on Wednesday, June 22nd. They set a “neutral” rating and a $53.00 target price for the company. Cowen and Company reiterated a “market perform” rating and set a $60.00 target price on shares of Dril-Quip in a research note on Tuesday. Scotiabank reiterated a “sector perform” rating and set a $67.00 target price (down previously from $72.00) on shares of Dril-Quip in a research note on Sunday, July 31st. Morgan Stanley reiterated a “hold” rating and set a $73.00 target price on shares of Dril-Quip in a research note on Monday, August 1st. Finally, Howard Weil decreased their target price on shares of Dril-Quip from $72.00 to $67.00 and set a “sector perform” rating for the company in a research note on Friday, July 29th. One equities research analyst has rated the stock with a sell rating, eleven have given a hold rating and three have assigned a buy rating to the stock. Dril-Quip has a consensus rating of “Hold” and a consensus target price of $63.33.
Dril-Quip (NYSE:DRQ) traded up 1.50% during midday trading on Wednesday, reaching $54.10. The company’s stock had a trading volume of 281,544 shares. Dril-Quip has a 52 week low of $48.88 and a 52 week high of $66.73. The firm has a market capitalization of $2.03 billion, a P/E ratio of 11.96 and a beta of 0.77. The company’s 50-day moving average is $54.25 and its 200 day moving average is $57.88.
Dril-Quip (NYSE:DRQ) last announced its earnings results on Friday, July 29th. The company reported $0.96 earnings per share for the quarter, topping the consensus estimate of $0.67 by $0.29. Dril-Quip had a net margin of 24.16% and a return on equity of 10.92%. The business earned $142.40 million during the quarter, compared to the consensus estimate of $149.33 million. During the same quarter in the prior year, the firm earned $1.01 earnings per share. The business’s quarterly revenue was down 33.8% compared to the same quarter last year. Analysts expect that Dril-Quip will post $2.17 earnings per share for the current fiscal year.
Several hedge funds and other institutional investors have recently modified their holdings of DRQ. LS Investment Advisors LLC boosted its position in shares of Dril-Quip by 73.7% in the second quarter. LS Investment Advisors LLC now owns 2,281 shares of the company’s stock worth $133,000 after buying an additional 968 shares during the period. Tower Research Capital LLC TRC acquired a new position in shares of Dril-Quip during the second quarter worth $153,000. Oakbrook Investments LLC acquired a new position in shares of Dril-Quip during the second quarter worth $202,000. Dynamic Technology Lab Private Ltd acquired a new position in shares of Dril-Quip during the second quarter worth $206,000. Finally, Bluestein R H & Co. acquired a new position in shares of Dril-Quip during the second quarter worth $234,000.
Dril-Quip Company Profile
Dril-Quip, Inc (Dril-Quip) designs, manufactures, sells and services engineered offshore drilling and production equipment. The Company’s principal products consist of subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipe, drilling and production riser systems, liner hangers, wellhead connectors and diverters.
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