Weatherford International (NASDAQ:WFRD) Shares Gap Up on Strong Earnings

Weatherford International plc (NASDAQ:WFRD)’s stock price gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $83.97, but opened at $88.32. Weatherford International shares last traded at $84.96, with a volume of 221,001 shares traded.

The company reported $2.06 earnings per share for the quarter, beating analysts’ consensus estimates of $1.65 by $0.41. Weatherford International had a net margin of 9.65% and a return on equity of 49.11%. The business had revenue of $1.41 billion for the quarter, compared to analyst estimates of $1.42 billion. During the same period last year, the business earned $1.66 EPS. The company’s revenue was up 7.3% on a year-over-year basis.

Weatherford International Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 5th. Stockholders of record on Wednesday, November 6th will be paid a dividend of $0.25 per share. The ex-dividend date is Wednesday, November 6th. This represents a $1.00 annualized dividend and a dividend yield of 1.29%. Weatherford International’s dividend payout ratio (DPR) is 14.04%.

Analyst Ratings Changes

WFRD has been the subject of several analyst reports. Bank of America reduced their price objective on Weatherford International from $145.00 to $130.00 and set a “buy” rating for the company in a research note on Monday, October 14th. Raymond James cut their price target on Weatherford International from $161.00 to $158.00 and set a “strong-buy” rating for the company in a research note on Thursday, July 25th. Benchmark reiterated a “buy” rating and issued a $155.00 price objective on shares of Weatherford International in a research report on Thursday. Evercore ISI cut their price objective on shares of Weatherford International from $149.00 to $142.00 and set an “outperform” rating for the company in a research report on Thursday. Finally, Citigroup lowered their target price on shares of Weatherford International from $155.00 to $130.00 and set a “buy” rating on the stock in a report on Wednesday, September 25th. Seven investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, Weatherford International currently has a consensus rating of “Buy” and a consensus target price of $145.75.

Insider Transactions at Weatherford International

In related news, EVP David John Reed sold 6,805 shares of the firm’s stock in a transaction dated Thursday, September 5th. The shares were sold at an average price of $93.96, for a total value of $639,397.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.60% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Transcendent Capital Group LLC purchased a new stake in shares of Weatherford International during the 1st quarter worth approximately $29,000. Fidelis Capital Partners LLC purchased a new stake in Weatherford International during the first quarter worth $33,000. Fifth Third Bancorp grew its holdings in Weatherford International by 31.0% in the second quarter. Fifth Third Bancorp now owns 359 shares of the company’s stock valued at $44,000 after purchasing an additional 85 shares during the last quarter. GAMMA Investing LLC increased its position in shares of Weatherford International by 50.4% in the second quarter. GAMMA Investing LLC now owns 382 shares of the company’s stock valued at $47,000 after buying an additional 128 shares in the last quarter. Finally, nVerses Capital LLC acquired a new position in shares of Weatherford International during the 3rd quarter worth $34,000. 97.23% of the stock is owned by hedge funds and other institutional investors.

Weatherford International Stock Down 4.7 %

The firm has a market capitalization of $5.66 billion, a PE ratio of 11.10, a price-to-earnings-growth ratio of 0.86 and a beta of 0.58. The firm’s 50-day moving average is $94.51 and its 200 day moving average is $110.39. The company has a debt-to-equity ratio of 1.31, a quick ratio of 1.47 and a current ratio of 1.99.

About Weatherford International

Weatherford International plc, an energy services company, provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil, geothermal, and natural gas wells worldwide. The company operates through three segments: Drilling and Evaluation; Well Construction and Completions; and Production and Intervention.