NEW YORK (TheStreet) -- Shares of Nabors Industries (NBR) fell 1.9% to $24.31 in morning trading Thursday after billionaire Alex Knaster's investment firm Pamplona Capital Management sold its 8.5% stake in the Bermuda-based company.
Pamplona bought its stake two years ago after longtime Nabors CEO Gene Isenberg left the company, which caused the stock to drop. But Nabors is up 46% year-to-date, and Pamplona sold its stake for an approximately $250 million gain, nearly twice its original investment.
The investment firm was Nabors' largest shareholder before the sale.
More than 6 million shares had changed hands as of 11:04 a.m., compared to the average volume of 3,693,440.
Separately, TheStreet Ratings team rates NABORS INDUSTRIES LTD as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate NABORS INDUSTRIES LTD (NBR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, solid stock price performance, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 1918.8% when compared to the same quarter one year prior, rising from -$3.61 million to $65.68 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 20.4%. Since the same quarter one year prior, revenues rose by 10.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 162.50% and other important driving factors, this stock has surged by 64.84% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- NABORS INDUSTRIES LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NABORS INDUSTRIES LTD reported lower earnings of $0.51 versus $0.80 in the prior year. This year, the market expects an improvement in earnings ($1.22 versus $0.51).
- NBR's debt-to-equity ratio of 0.65 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.47 is sturdy.
- You can view the full analysis from the report here: NBR Ratings Report
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