Stock Traders Buy High Volume of NOV Call Options (NYSE:NOV)

Key Points

• NOV call-option activity surged: Investors purchased 10,075 call options, 2,770% above the typical volume of 351 contracts, while the stock fell 2.4% to $18.55.
• Quarterly results exceeded expectations: NOV reported earnings of $0.31 per share versus the $0.17 consensus estimate and revenue of $2.13 billion, though revenue declined 2.5% year over year.
• Analyst sentiment remains mixed: NOV carries an average “Hold” rating with a $21.23 price target, while the company maintains a $0.09 quarterly dividend, equivalent to a 1.9% yield.

NOV Inc. (NYSE:NOV - Get Free Report) was the target of some unusual options trading on Wednesday. Investors bought 10,075 call options on the stock. This is an increase of 2,770% compared to the typical volume of 351 call options.

NOV Stock Down 2.4%

Shares of NYSE NOV traded down $0.46 during trading on Wednesday, hitting $18.55. The stock had a trading volume of 1,294,038 shares, compared to its average volume of 4,257,981. NOV has a 12 month low of $12.28 and a 12 month high of $21.93. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.42 and a quick ratio of 1.61. The firm has a fifty day moving average of $20.34 and a two-hundred day moving average of $19.92. The company has a market capitalization of $6.61 billion, a PE ratio of 71.10 and a beta of 0.97.

NOV (NYSE:NOV - Get Free Report) last posted its earnings results on Tuesday, July 28th. The oil and gas exploration company reported $0.31 EPS for the quarter, topping the consensus estimate of $0.17 by $0.14. The firm had revenue of $2.13 billion for the quarter, compared to analysts' expectations of $2.08 billion. NOV had a net margin of 1.10% and a return on equity of 3.44%. The company's quarterly revenue was down 2.5% compared to the same quarter last year. During the same quarter last year, the firm earned $0.29 EPS. As a group, equities research analysts forecast that NOV will post 0.99 EPS for the current fiscal year.

NOV Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 11th were paid a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date was Friday, September 11th. NOV's payout ratio is presently 138.46%.

Wall Street Analysts Forecast Growth

NOV has been the subject of a number of analyst reports. Morgan Stanley set a $21.00 target price on shares of NOV in a research note on Wednesday, July 15th. TD Cowen lifted their price objective on NOV from $25.00 to $26.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Susquehanna upped 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 Thursday, July 30th. Zacks Research lowered shares of NOV from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 26th. Finally, Barclays dropped their price target on NOV from $21.00 to $20.00 and set an "underweight" rating on the stock in a research report on Friday, July 31st. Five investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $21.23.

Insiders Place Their Bets

In other NOV news, Director David Harrison sold 9,594 shares of the company's stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $19.21, for a total transaction of $184,300.74. Following the completion of the sale, the director directly owned 126,763 shares of the company's stock, valued at approximately $2,435,117.23. This represents a 7.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 1.15% of the company's stock.

Hedge Funds Weigh In On NOV

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. QRG Capital Management Inc. purchased a new stake in NOV during the 2nd quarter worth about $186,000. Tidal Investments LLC raised its stake in shares of NOV by 41.5% during the second quarter. Tidal Investments LLC now owns 103,242 shares of the oil and gas exploration company's stock worth $1,915,000 after acquiring an additional 30,301 shares in the last quarter. WINTON GROUP Ltd bought a new position in shares of NOV during the 2nd quarter valued at $1,214,000. Integrated Wealth Concepts LLC boosted its position in NOV by 12.8% during the second quarter. Integrated Wealth Concepts LLC now owns 14,838 shares of the oil and gas exploration company's stock valued at $275,000 after buying an additional 1,683 shares during the period. Finally, IFP Advisors Inc lifted its stake in shares of NOV by 198.6% in the 2nd quarter. IFP Advisors Inc now owns 1,699 shares of the oil and gas exploration company's stock valued at $32,000 after acquiring an additional 1,130 shares during the last quarter. Institutional investors own 93.27% of the company's stock.

NOV Company Profile

NOV Inc is a global provider of equipment, technologies and services used in the oil and gas industry and related energy markets. The company supplies products for drilling, well construction, completion, production and maintenance activities across the energy value chain.

NOV's offerings include land and offshore drilling rigs, rig equipment, hoisting systems, top drives, mud pumps, drill bits, downhole tools, wellbore technologies, completion equipment and production systems. Its technologies are used by exploration and production companies, drilling contractors and oilfield service providers in onshore and offshore operations.

The company serves customers in major energy-producing regions around the world, including North America, South America, Europe, the Middle East, Africa and Asia-Pacific.

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