Nabors Industries (NYSE:NBR) Shares Gap Up - Here's Why

Key Points

• Nabors Industries shares surged 9.8%, opening at $86.21 versus a prior close of $81.32, after the company reported third-quarter revenue of $872.2 million, up 6.6% year over year and above analyst estimates.
• Operational results were mixed: international drilling achieved record margins, adjusted EBITDA rose to $245.5 million, and adjusted free cash flow reached $74.5 million, but Nabors posted a $1.24-per-share net loss, far worse than consensus expectations.
• Management expects approximately $930 million in full-year adjusted EBITDA and $100 million–$110 million in adjusted free cash flow. Analysts remain cautious, with the stock carrying an average “Hold” rating and an average price target of $103.43.

Nabors Industries Ltd. (NYSE:NBR - Get Free Report)'s share price gapped up prior to trading on Wednesday. The stock had previously closed at $81.32, but opened at $86.21. Nabors Industries shares last traded at $90.2450, with a volume of 159,108 shares.

Nabors Industries News Roundup

Here are the key news stories impacting Nabors Industries this week:

• Positive Sentiment: Revenue rose 6.6% year over year to approximately $872.2 million, exceeding analysts’ estimates of roughly $859–870 million. The company also reported $245.5 million in adjusted EBITDA. Nabors Industries Q3 earnings results
• Positive Sentiment: International Drilling delivered a record daily adjusted gross margin of $19,060, while International Drilling adjusted EBITDA increased to $145.7 million from $130.5 million in the prior quarter. U.S. Drilling adjusted EBITDA also improved, and average rigs working increased to 177.1. Nabors third-quarter results release
• Positive Sentiment: Adjusted free cash flow totaled approximately $74.5 million, and Nabors redeemed $100 million of its 9.125% notes. Management expects full-year adjusted EBITDA of about $930 million and adjusted free cash flow of $100 million to $110 million. Record international drilling margin and free cash flow
• Neutral Sentiment: Analysts’ median price target is reported at $99, implying potential upside from recent trading levels, although targets are based on older research and are not guarantees. Nabors analyst price targets
• Negative Sentiment: Nabors posted a net loss of $11.2 million, or $1.24 per share, substantially worse than consensus estimates for a loss of approximately $0.14–$0.36 per share. Operating profit and operating cash flow also declined year over year, while total liabilities stood at $2.9 billion. Nabors Q3 loss and revenue report

Analysts Set New Price Targets

A number of brokerages have issued reports on NBR. Wall Street Zen lowered shares of Nabors Industries from a "hold" rating to a "sell" rating in a research report on Saturday, August 1st. Morgan Stanley set a $110.00 price target on shares of Nabors Industries in a research report on Thursday, August 20th. Susquehanna reiterated a "neutral" rating and issued a $91.00 price target (up from $85.00) on shares of Nabors Industries in a research note on Monday, October 5th. Piper Sandler reissued an "overweight" rating and set a $130.00 price target (up from $120.00) on shares of Nabors Industries in a research report on Thursday, July 30th. Finally, Weiss Ratings upgraded Nabors Industries from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, August 13th. Two analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, Nabors Industries currently has an average rating of "Hold" and an average target price of $103.43.

Nabors Industries Stock Up 9.8%

The firm's 50-day moving average price is $85.03 and its 200 day moving average price is $83.76. The company has a market capitalization of $1.42 billion, a price-to-earnings ratio of 6.65 and a beta of 1.11. The company has a current ratio of 1.89, a quick ratio of 1.75 and a debt-to-equity ratio of 2.24.

Nabors Industries (NYSE:NBR - Get Free Report) last posted its quarterly earnings results on Tuesday, October 27th. The oil and gas company reported ($1.24) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.14) by ($1.10). The firm had revenue of $872.19 million for the quarter, compared to analyst estimates of $859.20 million. Nabors Industries had a negative return on equity of 7.06% and a net margin of 7.64%. The business's revenue was up 6.6% on a year-over-year basis. During the same quarter in the prior year, the business posted $16.85 EPS. On average, sell-side analysts forecast that Nabors Industries Ltd. will post -3.54 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director David Tudor sold 3,200 shares of Nabors Industries stock in a transaction on Friday, August 28th. The stock was sold at an average price of $92.30, for a total value of $295,360.00. Following the transaction, the director owned 5,264 shares in the company, valued at approximately $485,867.20. This trade represents a 37.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 5.32% of the stock is owned by insiders.

Institutional Trading of Nabors Industries

Several institutional investors and hedge funds have recently modified their holdings of NBR. IFP Advisors Inc boosted its stake in Nabors Industries by 106.6% in the second quarter. IFP Advisors Inc now owns 436 shares of the oil and gas company's stock valued at $37,000 after buying an additional 225 shares in the last quarter. State of Alaska Department of Revenue acquired a new position in Nabors Industries during the third quarter worth about $41,000. EverSource Wealth Advisors LLC raised its stake in Nabors Industries by 29.3% during the first quarter. EverSource Wealth Advisors LLC now owns 622 shares of the oil and gas company's stock worth $54,000 after acquiring an additional 141 shares in the last quarter. Allworth Financial LP raised its stake in Nabors Industries by 16.9% during the second quarter. Allworth Financial LP now owns 1,134 shares of the oil and gas company's stock worth $95,000 after acquiring an additional 164 shares in the last quarter. Finally, Public Employees Retirement System of Ohio bought a new position in shares of Nabors Industries in the second quarter worth about $101,000. 81.92% of the stock is currently owned by institutional investors.

Nabors Industries Company Profile

Nabors Industries Ltd. is a global provider of drilling and well-construction services to the oil and gas industry. The company operates land-based drilling rigs and offshore drilling units, serving exploration and production companies developing conventional and unconventional oil and natural gas resources.

Its services and products include contract drilling, directional drilling, measurement-while-drilling and logging-while-drilling technologies, wellbore placement, and drilling-related equipment.

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