Nabors stock hits 52-week low at $25.1 amid sharp yearly decline

Nabors Industries Ltd. (NYSE:NBR) stock has tumbled to a 52-week low, reaching a price level of $25.1, with InvestingPro data showing the company’s Financial Health Score at a concerning "FAIR" level of 2.04 out of 5. This latest dip underscores a challenging period for the company, which has seen its stock price significantly retract by 66.34% over the past year. The company operates with a significant debt burden, with a debt-to-equity ratio of 7.87, while quickly burning through cash. Investors have been closely monitoring Nabors’ performance, as the stock’s downward trajectory reflects broader concerns in the sector and potential headwinds facing the company’s operations. According to InvestingPro, analysts do not anticipate profitability this year, with EPS forecasts at -$4.42. The 52-week low serves as a critical marker for Nabors, highlighting the volatility and the bearish sentiment that has gripped the stock in the current market cycle. For deeper insights into NBR’s valuation and 15+ additional ProTips, explore the comprehensive analysis available on InvestingPro.

In other recent news, Nabors Industries Ltd. reported first-quarter earnings that surpassed analyst expectations, with adjusted earnings per share of $2.18 against a consensus estimate of a loss of $2.88 per share. The company also reported revenue of $742.78 million, exceeding the expected $708.81 million. The strong performance was attributed to improvements in the international drilling segment and the acquisition of Parker Wellbore, which contributed to the quarter’s results. However, in the U.S. drilling segment, Nabors faced challenges as adjusted EBITDA decreased to $92.7 million from $105.8 million in the previous quarter due to a reduced rig count and higher expenses.

Barclays (LON:BARC) recently downgraded Nabors’ stock from Equalweight to Underweight, lowering the price target to $28 from $53, citing concerns about potential declines in EBITDA in the Lower 48 region and international operations. The firm expressed skepticism regarding the financial sustainability of Nabors’ SANAD joint venture with Saudi Aramco (TADAWUL:2222), projecting possible cash shortfalls that might require additional funding. Meanwhile, Citi maintained a Neutral rating on Nabors but reduced the price target to $38 from $50, factoring in the Parker Drilling acquisition and predicting a second-quarter EBITDA of $251 million, in line with consensus estimates. Citi’s forecast for 2026 anticipates an EBITDA of $1.03 billion, slightly below consensus expectations. These developments reflect a cautious outlook from analysts, with potential risks cited due to lower crude oil prices.

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