Y Intercept Hong Kong Ltd has acquired a significant stake in SLB Limited (NYSE: SLB), as detailed in the company’s recent filing with the Securities and Exchange Commission. The investment firm purchased 163,033 shares of the oil and gas company, valued at approximately $5.5 million during the second quarter of 2023.
This acquisition follows a trend among institutional investors, as several hedge funds have recently adjusted their positions in SLB. Notably, Nuveen LLC made a new investment in the company during the first quarter, valued at around $169.2 million. Additionally, Alan B Lancz & Associates Inc. acquired shares worth approximately $308,000 during the same period.
In a noteworthy increase, Shell Asset Management Co. raised its stake in SLB by 48.1% this past quarter, now owning 62,737 shares valued at $2.1 million after acquiring an additional 20,387 shares. Godsey & Gibb Inc. also grew its position by 9.6%, bringing its total to 493,092 shares valued at $16.7 million. Stratos Investment Management LLC made a dramatic increase in its holdings, growing its position by 236.0% in the first quarter, now holding 146,908 shares worth $6.1 million. Overall, institutional investors and hedge funds control approximately 82% of SLB’s stock.
Analysts React to SLB’s Performance
Several research analysts have provided their insights on SLB’s stock. Zacks Research upgraded SLB from a “strong sell” to a “hold” rating on September 15, 2023. Melius initiated coverage with a “buy” rating and a price target of $82.00. Citigroup increased its price target from $46.00 to $47.00, maintaining a “buy” rating. Conversely, Stifel Nicolaus reduced its price target from $54.00 to $52.00, while Wells Fargo lowered its rating from “strong buy” to “hold.”
Overall, SLB has received two “strong buy” ratings, thirteen “buy” ratings, and five “hold” ratings, resulting in an average rating of “moderate buy” with a price target of $51.69, according to MarketBeat.
Insider Trading and Stock Performance
In related news, insider Dianne B. Ralston sold 39,727 shares of SLB on September 12, 2023, at an average price of $36.08, totaling approximately $1.43 million. Following this transaction, Ralston retained 202,201 shares valued at around $7.3 million, marking a 16.42% decrease in her position. Company insiders own approximately 0.22% of SLB’s stock.
As of the latest trading session, SLB shares opened at $36.15. The company has a 50-day moving average of $34.72 and a 200-day moving average of $34.54. Over the past year, SLB’s shares have fluctuated between a low of $31.11 and a high of $44.97. With a market capitalization of $54.01 billion, SLB exhibits a price-to-earnings ratio of 13.96 and a debt-to-equity ratio of 0.40.
SLB recently reported its quarterly earnings on October 17, 2023, with earnings per share (EPS) of $0.69, surpassing analysts’ estimates of $0.67. The company generated revenues of $8.93 billion, slightly below the expected $8.99 billion. Year-over-year, SLB’s revenue decreased by 2.5%. Analysts project an EPS of $3.38 for the current fiscal year.
Additionally, SLB announced a quarterly dividend of $0.285 per share, set to be paid on January 8, 2024, to shareholders of record by December 3, 2023. This represents an annualized dividend of $1.14 and a dividend yield of 3.2%. The company’s dividend payout ratio stands at 44.02%.
SLB Limited specializes in providing technology and services for the energy sector, operating across four main divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The firm focuses on enhancing hydrocarbon production, carbon management, and reservoir analysis, among other services.
