Schlumberger Limited (NYSE: SLB) Loses -53.79% From High. Why That Could Change?


SSgA Funds Management, Inc. recently announced the acquisition of new stake in Schlumberger Limited (NYSE:SLB). The institutional investor has increased its shareholding in the Energy company by 3.11% to 77.29 million shares with purchase of 2.33 million shares. This fresh investment now brings its stake to 5.57% valued currently at $1.4 billion. In addition, BlackRock Fund Advisors raised its holdings by 1.18 million to 68.54 million shares. And Geode Capital Management LLC has lifted its position by 5.82% or 1.14 million shares – to 20.65 million shares.

With over 13.59 million Schlumberger Limited (SLB) shares trading Monday and a closing price of $19.01 on the day, the dollar volume was approximately $258.29 million. The shares have shown a negative weekly performance of -2.76% and its price on 08/31/20 lost nearly -2.11%. Currently, there are 1.39B common shares owned by the public and among those 1.39B shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 31 analysts who have offered their price forecasts for SLB have a consensus price objective of $23.84. The analysts have set the share’s price value over the next 12 months at a high of $30.00 and a low of $16.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Schlumberger Limited stock is 2.20 for the next 12 months. The average price target is 19.38% above its last price level and an upside to the estimated low will see the stock lose -18.81% over that period. But an upside of 36.63% will see the stock hit the forecast high price target while mean target price for the stock is $24.00.

Insiders at the company have transacted a total of 115 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 74 of these insider trades were purchases, accounting for 1,090,296 shares. Insider sales of the common stock occurred on 41 occasions, with total insider shares sold totaling 514,404 shares.

The top 3 mutual fund holders in Schlumberger Limited are Vanguard Total Stock Market Index, Dodge & Cox Funds – Stock Fund, and Vanguard 500 Index Fund. Vanguard Total Stock Market Index owns 39.49 million shares of the company’s stock, all valued at over $716.31 million. The company sold 22593.0 shares recently to bring their total holdings to about 2.85% of the shares outstanding. Dodge & Cox Funds – Stock Fund bought 1.93 million shares to see its total holdings expand to 35.51 million shares valued at over $644.06 million and representing 2.56% of the shares outstanding. Vanguard 500 Index Fund sold -0.18 million shares to bring its total holdings to over 28.62 million shares at a value of $519.21 million. Vanguard 500 Index Fund now owns shares totaling to 2.06% of the shares outstanding.

Shares of Schlumberger Limited (NYSE: SLB) opened at $19.50, up $0.08 from a prior closing price of $19.42. However, the script later closed the day at $19.01, down -2.11%. The company’s stock has a 5-day price change of -2.76% and 0.80% over the past three months. SLB shares are trading -52.71% year to date (YTD), with the 12-month market performance down to -41.38% lower. It has a 12-month low price of $11.87 and touched a high of $41.14 over the same period. Currently, 13.59 million shares have been traded, compared to an average intraday trading volume of 13.32 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -2.43%, 0.33%, and -22.99% respectively.

Institutional ownership of Schlumberger Limited (NYSE: SLB) shares accounts for 75.40% of the company’s 1.39B shares outstanding. Mutual fund holders own 32.24%, while other institutional holders and individual stakeholders account for 42.73% and 2.82% respectively.

It has a market capitalization of $25.41B and a beta (3y monthly) value of 2.12. The earnings-per-share (ttm) stands at -$15.77. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.42% over the week and 3.59% over the month.

Analysts forecast that Schlumberger Limited (SLB) will achieve an EPS of $0.13 for the current quarter, $0.13 for the next quarter and $0.67 for 2021. The lowest estimate earnings-per-share for the quarter is $0.07 while analysts give the company a high EPS estimate of $0.17. Comparatively, EPS for the current quarter was $0.43 a year ago. Earnings per share for the fiscal year are expected to decrease by -576.90%, and 20.32% over the next financial year. EPS should grow at an annualized rate of -5.65% over the next five years, compared to -29.90% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 31 brokerage firm advisors rate Schlumberger Limited (SLB) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 18 Wall Street analysts polled rate the stock as a buy, while 10 of the 31 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the SLB, a number of firms have released research notes about the stock. Wells Fargo stated their Overweight rating for the stock in a research note on August 13, 2020, with the firm’s price target at $25-$28. Citigroup coverage for the Schlumberger Limited (SLB) stock in a research note released on July 27, 2020 offered a Buy rating with a price target of $26. Cowen was of a view on July 27, 2020 that the stock is Outperform, while Cowen gave the stock Outperform rating on July 24, 2020, issuing a price target of $27. Scotiabank on their part issued Sector Outperform rating on July 16, 2020.


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