NOV Target of Unusually High Options Trading (NYSE:NOV)

Key Points

• NOV saw unusually heavy options activity, with traders buying 2,616 put options — about 1,353% above the average daily volume.
• The company’s latest quarterly results were weak, as NOV reported EPS of $0.05, well below the $0.17 consensus estimate, while revenue of $2.05 billion merely matched expectations and declined year over year.
• Despite the earnings miss, NOV has a relatively solid balance sheet and continues to pay a dividend, but analyst sentiment remains cautious with a Hold consensus and an average price target of $19.36.

NOV Inc. (NYSE:NOV - Get Free Report) was the target of unusually large options trading activity on Wednesday. Stock traders acquired 2,616 put options on the stock. This is an increase of 1,353% compared to the average volume of 180 put options.

NOV Stock Performance

NOV stock opened at $20.50 on Thursday. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.66 and a current ratio of 2.47. The stock has a market cap of $7.36 billion, a P/E ratio of 85.40 and a beta of 0.92. The firm has a 50 day simple moving average of $19.37 and a 200 day simple moving average of $17.79. NOV has a 52 week low of $11.65 and a 52 week high of $20.93.

NOV (NYSE:NOV - Get Free Report) last posted its quarterly earnings results on Monday, April 27th. The oil and gas exploration company reported $0.05 EPS for the quarter, missing the consensus estimate of $0.17 by ($0.12). The company had revenue of $2.05 billion for the quarter, compared to analyst estimates of $2.05 billion. NOV had a return on equity of 3.34% and a net margin of 1.05%.The business's revenue for the quarter was down 2.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.19 earnings per share. Research analysts anticipate that NOV will post 0.92 earnings per share for the current fiscal year.

NOV Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, March 27th. Investors of record on Friday, March 13th were issued a dividend of $0.09 per share. This is an increase from NOV's previous quarterly dividend of $0.08. This represents a $0.36 annualized dividend and a dividend yield of 1.8%. The ex-dividend date was Friday, March 13th. NOV's dividend payout ratio is 150.00%.

Insider Activity at NOV

In other news, insider Joseph W. Rovig sold 151,086 shares of NOV stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $20.17, for a total value of $3,047,404.62. Following the transaction, the insider directly owned 269,694 shares of the company's stock, valued at $5,439,727.98. This trade represents a 35.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Craig L. Weinstock sold 70,000 shares of NOV stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $20.08, for a total transaction of $1,405,600.00. Following the completion of the transaction, the vice president directly owned 256,319 shares in the company, valued at approximately $5,146,885.52. This trade represents a 21.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.15% of the company's stock.

Institutional Trading of NOV

Institutional investors have recently added to or reduced their stakes in the business. Tejara Capital Ltd lifted its stake in NOV by 33.1% in the third quarter. Tejara Capital Ltd now owns 670,199 shares of the oil and gas exploration company's stock valued at $8,880,000 after acquiring an additional 166,692 shares during the last quarter. Monaco Asset Management SAM acquired a new stake in NOV in the third quarter valued at approximately $4,969,000. Keybank National Association OH acquired a new stake in NOV in the third quarter valued at approximately $3,978,000. American Century Companies Inc. lifted its stake in NOV by 43.6% in the third quarter. American Century Companies Inc. now owns 7,596,504 shares of the oil and gas exploration company's stock valued at $100,654,000 after acquiring an additional 2,304,975 shares during the last quarter. Finally, Vest Financial LLC lifted its stake in NOV by 31.7% in the third quarter. Vest Financial LLC now owns 379,056 shares of the oil and gas exploration company's stock valued at $5,022,000 after acquiring an additional 91,272 shares during the last quarter. 93.27% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting NOV

Here are the key news stories impacting NOV this week:

• Neutral Sentiment: NOV reported first-quarter earnings of $0.05 per share, missing analyst expectations of $0.17, which reinforces concerns that margins remain weak even as sales held steady. Revenue came in at $2.05 billion, matching consensus, so the market is likely focusing more on the earnings miss than on top-line performance.
• Neutral Sentiment: The company’s results also showed year-over-year revenue decline and a lower profit base versus the prior year, which may be limiting enthusiasm for the stock near its recent highs.
• Positive Sentiment: NOV’s balance sheet remains solid, with a quick ratio of 1.66, a current ratio of 2.47, and low debt-to-equity of 0.27, which can help support investor confidence.
• Positive Sentiment: Analysts still expect NOV to earn $0.93 per share for the full year, suggesting the market may be looking for a rebound later in 2026 if operating conditions improve.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. Royal Bank Of Canada lifted their target price on shares of NOV from $21.00 to $22.00 and gave the stock a "sector perform" rating in a research report on Wednesday, April 29th. Citigroup lifted their target price on shares of NOV from $17.00 to $20.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 11th. Susquehanna lifted their target price on shares of NOV from $22.00 to $24.00 and gave the stock a "positive" rating in a research report on Wednesday, April 29th. BMO Capital Markets lifted their target price on shares of NOV from $19.00 to $20.00 and gave the stock a "market perform" rating in a research report on Monday, February 9th. Finally, Evercore upgraded shares of NOV to a "hold" rating in a report on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $19.36.

About NOV

National Oilwell Varco NYSE: NOV is a leading provider of equipment and technology to the oil and gas industry. The company designs, manufactures and services an extensive portfolio of products used in drilling, completion and production operations. Its offerings include drilling rigs and related components, wellbore technologies such as tubulars and completion tools, surface equipment including mud pumps and blowout preventers, and aftermarket parts and services that support ongoing field operations.

NOV's business is organized to serve upstream energy companies around the world.

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