Desmond J. Mills, the Senior Vice President and Chief Accounting Officer of Weatherford International plc (NASDAQ:WFRD), recently sold a portion of his holdings in the company. According to a recent SEC filing, Mills sold 6,531 ordinary shares at a price of $79.86 each, generating a total of $521,565. Following this transaction, Mills retains ownership of 11,680 shares in the company. Weatherford International, headquartered in Houston, is a prominent player in the oil and gas field machinery and equipment sector.
In other recent news, Weatherford International reported consistent growth in its third-quarter earnings, maintaining an adjusted EBITDA margin of 25.2% and generating an adjusted free cash flow of $184 million. The company's revenue remained stable sequentially but saw a 7% increase from the previous year, largely driven by a 9% rise in international revenue. Alongside these earnings, Weatherford announced the initiation of a capital return program, which includes a quarterly dividend and share repurchases.
Evercore ISI, in its recent analysis, lowered the price target for Weatherford from $149.00 to $142.00, while still maintaining an Outperform rating on the stock. The firm's report suggests that Weatherford is well-positioned to benefit from a favorable geographical mix and the sustained international and offshore market upcycle, despite a somewhat weaker near-term outlook.
In addition to these developments, Weatherford has provided insights into strategic acquisitions and technology enhancements, aiming to drive future growth and margin expansion. The company anticipates flat to low-single-digit revenue growth in the fourth quarter, with a consistent adjusted EBITDA margin of around 25%. The full-year guidance includes over $500 million in adjusted free cash flow and an expected annual EBITDA growth of approximately 20%.
Despite challenges in Latin America and scheduling shifts in the Middle East and North Africa, Weatherford has achieved fourteen consecutive quarters of year-over-year international revenue growth. The company has also completed four smaller acquisitions this year, enhancing its portfolio without significant gaps. These are the latest updates from Weatherford International.
InvestingPro Insights
The recent sale by Weatherford International's Senior VP and Chief Accounting Officer comes at a time when the company's stock is trading near its 52-week low, according to InvestingPro data. This sale occurred amidst a significant 30.35% price decline over the past three months, potentially indicating insider sentiment about the company's near-term prospects.
Despite the recent stock performance, Weatherford International maintains a strong financial position. The company's revenue for the last twelve months as of Q3 2023 stood at $5.53 billion, with a healthy revenue growth of 11.08%. Moreover, the company's P/E ratio of 10.69 suggests it may be undervalued relative to its earnings potential.
InvestingPro Tips highlight that Weatherford is trading at a low P/E ratio relative to its near-term earnings growth, which could present an opportunity for investors. Additionally, the company operates with a moderate level of debt and has liquid assets exceeding short-term obligations, indicating financial stability.
For those seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Weatherford International, providing deeper insights into the company's financial health and market position.
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