National Energy Services Reunited (NASDAQ:NESR) Shares Gap Down - Should You Sell?

Key Points

• NESR shares fell sharply: The stock opened at $28.62 versus a prior close of $29.81 and was last trading near $27.22, down about 12%, with its 50-day moving average at $32.08.
• Analysts remain bullish: The company has a consensus “Buy” rating from nine analysts, with an average price target of $33.71 and targets as high as $46.
• Recent operating results were strong, with quarterly earnings of $0.44 per share beating estimates of $0.35 and revenue rising 59.1% year over year to $520.75 million. However, company insiders sold $6.2 million worth of shares over the past 90 days.

National Energy Services Reunited (NASDAQ:NESR - Get Free Report)'s stock price gapped down before the market opened on Tuesday. The stock had previously closed at $29.81, but opened at $28.62. National Energy Services Reunited shares last traded at $27.2160, with a volume of 568,161 shares trading hands.

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. Weiss Ratings upgraded shares of National Energy Services Reunited from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, September 11th. BTIG Research upped their price objective on shares of National Energy Services Reunited from $32.00 to $40.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. UBS Group set a $46.00 price objective on shares of National Energy Services Reunited in a research note on Tuesday. Piper Sandler lifted their target price on shares of National Energy Services Reunited from $33.00 to $35.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 14th. Finally, Citigroup restated a "buy" rating on shares of National Energy Services Reunited in a research note on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating and eight have issued a Buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average price target of $33.71.

National Energy Services Reunited Trading Down 12.0%

The company has a quick ratio of 0.86, a current ratio of 1.02 and a debt-to-equity ratio of 0.15. The firm has a market cap of $2.65 billion, a P/E ratio of 28.55, a price-to-earnings-growth ratio of 0.29 and a beta of 0.39. The firm's 50-day simple moving average is $32.08 and its 200 day simple moving average is $27.25.

National Energy Services Reunited (NASDAQ:NESR - Get Free Report) last released its earnings results on Monday, August 10th. The company reported $0.44 earnings per share for the quarter, beating analysts' consensus estimates of $0.35 by $0.09. National Energy Services Reunited had a net margin of 5.77% and a return on equity of 12.07%. The firm had revenue of $520.75 million during the quarter, compared to the consensus estimate of $448.54 million. National Energy Services Reunited's quarterly revenue was up 59.1% compared to the same quarter last year. As a group, analysts expect that National Energy Services Reunited will post 1.88 earnings per share for the current year.

Insider Buying and Selling at National Energy Services Reunited

In other National Energy Services Reunited news, CEO Sherif Foda sold 100,000 shares of the business's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $35.00, for a total value of $3,500,000.00. Following the sale, the chief executive officer directly owned 3,084,643 shares in the company, valued at $107,962,505. The trade was a 3.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Stefan Angeli sold 13,570 shares of the company's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $35.12, for a total value of $476,578.40. Following the transaction, the chief financial officer directly owned 549,763 shares in the company, valued at $19,307,676.56. This represents a 2.41% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 176,894 shares of company stock valued at $6,221,414. Company insiders own 9.70% of the company's stock.

Institutional Investors Weigh In On National Energy Services Reunited

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NESR. Integrated Wealth Concepts LLC bought a new position in National Energy Services Reunited during the second quarter worth about $45,000. USA Financial Formulas lifted its stake in shares of National Energy Services Reunited by 63.0% during the 1st quarter. USA Financial Formulas now owns 2,253 shares of the company's stock valued at $48,000 after buying an additional 871 shares in the last quarter. Allworth Financial LP boosted its holdings in National Energy Services Reunited by 51.0% in the 2nd quarter. Allworth Financial LP now owns 1,921 shares of the company's stock worth $57,000 after buying an additional 649 shares during the period. Clearstead Advisors LLC boosted its holdings in National Energy Services Reunited by 180.1% in the 4th quarter. Clearstead Advisors LLC now owns 4,932 shares of the company's stock worth $77,000 after buying an additional 3,171 shares during the period. Finally, Globeflex Capital L P purchased a new position in National Energy Services Reunited in the 1st quarter valued at approximately $151,000. 15.55% of the stock is currently owned by institutional investors.

About National Energy Services Reunited

National Energy Services Reunited Corp. is an oilfield services company that provides equipment, technologies and technical support to energy producers and drilling contractors. Its activities are primarily focused on the Middle East, North Africa and South Asia.

The company operates through two broad business areas: drilling and evaluation, and well services. Its offerings include drilling services, wireline and logging, well testing, cementing, coiled tubing, hydraulic fracturing, stimulation, artificial lift, completion services and production enhancement.

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