Innovex International (NYSE:INVX) Shares Gap Down on Disappointing Earnings

Key Points

• Innovex International shares fell sharply after the company reported quarterly EPS of $0.37, below the $0.39 consensus estimate. Revenue of $265.05 million also narrowly missed analyst expectations, and the stock opened at $25.98 versus its prior close of $30.00.
• Analyst sentiment remains generally positive but has softened, with recent downgrades to “hold.” The stock has a consensus “Moderate Buy” rating and an average price target of $32.80.
• Insiders sold nearly 10 million shares worth approximately $286.1 million during the last quarter, including a 4.95 million-share sale by Co-Invest Fund L.P. Insiders still own 34.9% of the company.

Shares of Innovex International, Inc. (NYSE:INVX - Get Free Report) gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $30.00, but opened at $25.98. Innovex International shares last traded at $27.4010, with a volume of 102,254 shares trading hands.

The company reported $0.37 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.02). The company had revenue of $265.05 million during the quarter, compared to analysts' expectations of $265.64 million. Innovex International had a return on equity of 7.12% and a net margin of 6.17%.

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. Wall Street Zen cut shares of Innovex International from a "buy" rating to a "hold" rating in a report on Monday, August 17th. Zacks Research downgraded shares of Innovex International from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 17th. Weiss Ratings upgraded Innovex International from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Barclays raised their price objective on Innovex International from $26.00 to $27.00 and gave the stock an "equal weight" rating in a research report on Tuesday, August 11th. Finally, JPMorgan Chase & Co. started coverage on shares of Innovex International in a research report on Tuesday. They issued a "neutral" rating and a $33.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Innovex International currently has a consensus rating of "Moderate Buy" and an average price target of $32.80.

Insider Activity

In other Innovex International news, insider Mark Reddout sold 10,000 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $30.00, for a total value of $300,000.00. Following the completion of the transaction, the insider directly owned 124,312 shares of the company's stock, valued at approximately $3,729,360. The trade was a 7.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Co-Invest Fund L.P. Innovex sold 4,954,467 shares of the firm's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $28.71, for a total transaction of $142,242,747.57. Following the sale, the director directly owned 311 shares in the company, valued at $8,928.81. The trade was a 99.99% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 9,964,467 shares of company stock valued at $286,092,748 in the last quarter. 34.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Freestone Grove Partners LP purchased a new stake in Innovex International during the 2nd quarter valued at about $43,000. USA Financial Formulas purchased a new position in Innovex International in the 1st quarter worth approximately $53,000. Global Retirement Partners LLC acquired a new position in shares of Innovex International during the 2nd quarter worth approximately $122,000. Quantinno Capital Management LP acquired a new position in shares of Innovex International during the 1st quarter worth approximately $215,000. Finally, Summit Global Investments acquired a new position in shares of Innovex International during the 2nd quarter worth approximately $222,000.

Innovex International Stock Down 8.2%

The company has a quick ratio of 3.32, a current ratio of 5.01 and a debt-to-equity ratio of 0.02. The business has a 50-day moving average price of $28.94 and a 200-day moving average price of $27.13. The firm has a market capitalization of $1.93 billion, a PE ratio of 30.94 and a beta of 0.92.

Innovex International Company Profile

Innovex International, Inc is an energy technology and oilfield equipment company that provides products and services used throughout the life cycle of oil and natural gas wells. Its offerings support drilling, completion, production, intervention and other well-construction and well-maintenance activities for operators and oilfield service companies.

The company's portfolio includes downhole tools and technologies, completion equipment, wellhead and production systems, and equipment used in onshore and offshore applications.

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