Zacks Investment Research upgraded shares of RPC (NYSE:RES) from a strong sell rating to a hold rating in a report released on Friday morning.
According to Zacks, “RPC is among the leading providers of advanced oilfield services and equipment to almost all the prospective oil and gas plays in the United States. The company is strongly committed in returning cash back to the stockholders through dividend payments and share buybacks. Also, over the past 16 years, RPC has been reporting positive operating cash flows, reflecting the company’s stable operations despite volatile commodity prices. However, the intensified competition in the domestic market has left limited rooms for the oilfield services companies like RPC to charge premium prices for their services. Also, as RPC gets the largest oilfield services contracts from the Permian Basin, constrained drilling activities in that region has made the company’s future prospects gloomy. Moreover, rising costs and expenses are a concern for the company. Therefore, a cautious stance should be taken on the stock.”
RES has been the topic of several other research reports. Credit Suisse Group decreased their price objective on RPC from $17.00 to $15.00 and set a neutral rating on the stock in a research note on Thursday, July 26th. Jefferies Financial Group reaffirmed a hold rating and issued a $15.00 price objective on shares of RPC in a research note on Thursday, July 26th. SunTrust Banks downgraded RPC from a buy rating to a hold rating and decreased their price objective for the stock from $25.00 to $16.00 in a research note on Thursday, August 30th. ValuEngine raised RPC from a strong sell rating to a sell rating in a research note on Tuesday, October 2nd. Finally, Citigroup decreased their price objective on RPC from $15.00 to $14.00 and set a neutral rating on the stock in a research note on Friday, September 14th. Three investment analysts have rated the stock with a sell rating, sixteen have given a hold rating and two have given a buy rating to the company. RPC presently has an average rating of Hold and a consensus target price of $19.13.
RPC (NYSE:RES) last posted its quarterly earnings data on Wednesday, July 25th. The oil and gas company reported $0.28 EPS for the quarter, missing the consensus estimate of $0.29 by ($0.01). RPC had a return on equity of 23.23% and a net margin of 12.60%. The company had revenue of $467.93 million during the quarter, compared to the consensus estimate of $488.40 million. During the same period last year, the business earned $0.20 EPS. The firm’s quarterly revenue was up 17.3% compared to the same quarter last year. On average, analysts forecast that RPC will post 0.94 EPS for the current fiscal year.
Several large investors have recently added to or reduced their stakes in RES. Investec Asset Management LTD grew its holdings in RPC by 19.1% during the 2nd quarter. Investec Asset Management LTD now owns 351,228 shares of the oil and gas company’s stock valued at $5,117,000 after buying an additional 56,238 shares in the last quarter. Quantitative Systematic Strategies LLC purchased a new position in RPC during the 2nd quarter valued at approximately $169,000. Mackay Shields LLC purchased a new position in RPC during the 2nd quarter valued at approximately $1,827,000. Putnam Investments LLC purchased a new position in RPC during the 2nd quarter valued at approximately $605,000. Finally, Point72 Hong Kong Ltd grew its holdings in RPC by 682.3% during the 2nd quarter. Point72 Hong Kong Ltd now owns 13,667 shares of the oil and gas company’s stock valued at $199,000 after buying an additional 11,920 shares in the last quarter. Hedge funds and other institutional investors own 31.74% of the company’s stock.
RPC, Inc provides a range of oilfield services and equipment for the oil and gas companies involved in the exploration, production, and development of oil and gas properties. The company operates through Technical Services and Support Services segments. The Technical Services offers pressure pumping, fracturing, acidizing, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, pump down, and fishing services that are used in the completion, production, and maintenance of oil and gas wells.
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