Noble (NYSE:NE) Shares Break Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• Noble shares fell below their 200-day moving average, trading at about $43.99 versus the $44.53 average.
• Analysts have a consensus “Moderate Buy” rating and an average price target of $46.57, though ratings range from Strong Buy to Sell.
• Noble missed quarterly EPS estimates, reporting a $0.57 loss per share, while revenue topped forecasts but declined 8.6% year over year. The company also declared a $0.50 quarterly dividend, a 4.5% yield.

Noble Corporation PLC (NYSE:NE - Get Free Report)'s share price passed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $44.53 and traded as low as $43.87. Noble shares last traded at $43.9910, with a volume of 1,342,849 shares trading hands.

Analysts Set New Price Targets

Several analysts have recently weighed in on NE shares. Noble Financial started coverage on Noble in a report on Thursday, October 29th. They issued an "outperform" rating for the company. Fearnley Fonds raised shares of Noble from a "hold" rating to a "strong-buy" rating in a report on Wednesday, July 29th. Wall Street Zen lowered Noble from a "hold" rating to a "sell" rating in a report on Saturday, August 1st. Susquehanna upped their target price on shares of Noble from $44.00 to $46.00 and gave the stock a "neutral" rating in a research report on Wednesday, October 28th. Finally, Barclays lowered their target price on Noble from $55.00 to $53.00 and set an "overweight" rating on the stock in a report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $46.57.

Noble Stock Performance

The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.76 and a current ratio of 1.76. The company has a market capitalization of $7.02 billion, a PE ratio of 133.31 and a beta of 1.05. The company has a 50 day moving average price of $44.51 and a 200 day moving average price of $44.53.

Noble (NYSE:NE - Get Free Report) last released its quarterly earnings data on Monday, October 26th. The company reported ($0.57) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.23 by ($0.80). Noble had a net margin of 1.79% and a negative return on equity of 0.76%. The company had revenue of $728.76 million for the quarter, compared to analyst estimates of $713.82 million. During the same quarter in the prior year, the firm earned ($0.13) EPS. The company's revenue for the quarter was down 8.6% compared to the same quarter last year. Equities analysts forecast that Noble Corporation PLC will post 0.47 EPS for the current year.

Noble Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Wednesday, November 25th will be paid a $0.50 dividend. The ex-dividend date of this dividend is Wednesday, November 25th. This represents a $2.00 annualized dividend and a dividend yield of 4.5%. Noble's payout ratio is currently 606.06%.

Hedge Funds Weigh In On Noble

Institutional investors have recently bought and sold shares of the stock. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Noble in the second quarter worth $1,481,000. First Eagle Investment Management LLC raised its holdings in shares of Noble by 2.9% during the second quarter. First Eagle Investment Management LLC now owns 13,957,162 shares of the company's stock worth $520,602,000 after acquiring an additional 395,316 shares in the last quarter. State of Alaska Department of Revenue acquired a new stake in Noble during the third quarter valued at $1,099,000. Merrion Investment Management Co LLC acquired a new stake in Noble during the third quarter valued at $1,252,000. Finally, State Street Corp grew its stake in Noble by 4.1% in the second quarter. State Street Corp now owns 5,428,507 shares of the company's stock valued at $202,483,000 after purchasing an additional 215,799 shares in the last quarter. Hedge funds and other institutional investors own 68.14% of the company's stock.

About Noble

Noble Corporation plc NYSE: NE is an offshore drilling contractor that provides drilling services to the global oil and gas industry. The company operates a fleet of offshore drilling units, including drillships, semisubmersible rigs and jackup rigs, which are used to explore for and develop oil and natural gas reserves beneath the seabed.

Noble's services include contract drilling, well planning, project management and other related support services. Its drilling units are designed to operate in a range of offshore environments, including deepwater and harsh-environment locations.

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