Will Investors Now Sell Dril-Quip (NYSE:DRQ) Stock Following Today’s, Scotia Howard Weil Downgrades?


Dril-Quip (NYSE:DRQ) Receives a Downgrade

In recent note made public on Monday morning, Scotia Howard Weil announced that they will be downgrading shares of Dril-Quip (NYSE:DRQ) from a Sector Outperform to a Sector Perform rating.

From a total of 12 analysts covering Dril Quip (NYSE:DRQ) stock, 6 rate it a ”Buy”, 1 a “Sell”, and 6 a ”Hold”. This means that 46% of the ratings are positive. The highest target price is $75 while the lowest target price is $55. The mean of all analyst targets is $68.33 with a 18.37% above today’s ($58.29) stock price. Dril Quip was the topic of 12 analyst reports since July 31, 2015 according to the firm StockzIntelligence Inc. Guggenheim upgraded shares on November 30 to “Buy” rating. Cowen & Co maintained DRQ stock in a recent report from November 2 with “Market Perform” rating. Finally, Bank of America downgraded the stock to “Neutral” rating in a report issued on a July 31.

Approximately 48,173 shares of stock traded hands. Dril-Quip, Inc. (NYSE:DRQ) has declined 23.56% since May 11, 2015 and is downtrending. It has underperformed by 19.14% the S&P500.

The overall sentiment of institutions has decreased to 1.17 in Q2 2015. Its down 0.06, from 1.23 in 2015Q2. The ratio worsened, as 33 institutions have sold all the shares of Dril-Quip, Inc. that they owned while 80 funds have taken shares off the table. 25 funds have purchased shares for the first time while 107 added to their positions. These institutions now hold 48.92 million shares or 20.93% more than the 40.45 million shares they owned in 2015Q2.

The Fund Texan Capital Management currently is holding shares equating to 3.86% of its total portfolio in Dril-Quip, Inc. representing a total of 150,200 shares. Another fund,Energy Opportunities Capital Management Llc, is holding a total of 158,012 shares equating to 3.01% of their holdings. Additionally, Arosa Capital Management Lp has a 306,470 share stake in Dril-Quip, Inc. which represents 2.58% of their total portfolio. The Fund, Springbank Value Partners Lp, based out of New York, has also built up a stake in the stock, which represents a total of 2.56% of their total portfolio. Finally Value Holdings Lp, a fund which is based in the state of New York reported a total holdings of 59,200 shares.

Dril-Quip, Inc. designs, manufactures, sells and services engineered offshore drilling and production equipment. The company has a market cap of $2.25 billion. The Company’s equipment is suited for use in deepwater, harsh environments and service applications. It has 11.2 P/E ratio. The Company’s operates in Western Hemisphere, including North and South America; Eastern Hemisphere, including Europe and Africa and Asia-Pacific, including the Pacific Rim, Southeast Asia, Australia, India and the Middle East.

According to Zacks Investment Research, “Dril-Quip, Inc. is a manufacturers of highly engineered offshore drilling and production equipment which is well suited for use in deepwater, harsh environment and severe service applications. They design and manufacture subsea equipment, surface equipment and offshore rig equipment for use by major integrated, large independent and foreign national oil and gas companies in offshore areas throughout the world. Their principal products consist of subsea and surface wellheads and production trees, mudline hanger systems, specialty connectors and associated pipe.”