Shares of Schlumberger Limited (NYSE:SLB) recorded -1.56% loss during trading session on February 8th, 2019. The script traded as low as $42.23 and last traded at $42.78. 9.17 million shares changed exchanged hands during trading, an increase of 38.77% from the 30-day average session volume of 14.98M shares. The firm had previously closed at $43.46. The company has $1.40B outstanding shares, a price-to-earnings ratio of 27.87, price-to-earnings-growth ratio of 1.83and a beta of 1.38. The company has a RSI of 47.82, ATR of 1.25 and a volatility of 2.46% this week. SLB has a 52 week low price of $34.99 and a 52 week high price of $75.43.
Investors have identified the tech company Schlumberger Limited as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 60.10B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Schlumberger Limited (SLB) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For SLB, the company has in raw cash 1.43 billion on their books with 10.22 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 15.73 billion total, with 31.66 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
SLB were able to record 3.55 billion as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 366 million. In cash movements, the company had a total of 5.71 billion as operating cash flow.
Potential earnings growth for Schlumberger Limited (SLB)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Schlumberger Limited recorded a total of 8.18 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.00% coming in sequential stages and their sales for the third quarter reducing by -0.04%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 7.25 billion trying to sell their products during the last quarter, with the result yielding a gross income of 929 million. This allows shareholders to hold on to 1.40B with the revenue now reading 390 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.35 cents a share).
Is the stock of SLB attractive?
Having a look at the company’s valuation, the company is expected to record 2.35 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on SLB sounds very interesting.
In related news, EVP Reservoir & Infrastructure Le Peuch Olivier sold 15,000 shares of the company’s stock in a transaction that recorded on January 22nd, 2019. The sale was performed at an average price of 44.00, for a total value of 660,000. As the sale deal closes, the EVP Wells Le Peuch Olivier now bought 10,000 shares of the company’s stock, valued at 375,500. Also, Chief Financial Officer AYAT SIMON sold 30,000 shares of the company’s stock in a deal that was recorded on October 30th, 2019. The shares were sold at an average price of 51.20 per share, with a total market value of 204,008. Following this completion of acquisition, the Chief Financial Officer now holds 30,000 shares of the company’s stock, valued at 1,860,000. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
9 out of 34 analysts covering the stock have rated it a Buy, while 14 have maintained a Hold recommendation on Schlumberger Limited stock. 0 analysts has assigned a Sell rating on the SLB stock. The 12-month mean consensus price target for the company’s shares has been set at $53.85.