Van ECK Associates Corp decreases stake in Weatherford International by 14.2% in Q3
November 6, 2024
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Weatherford International ($NASDAQ:WFRD) is a multinational oilfield service company that provides equipment and services for the drilling, evaluation, completion, production, and intervention of oil and natural gas wells. In the third quarter of this year, one of Weatherford International’s major shareholders, Van ECK Associates Corp, made a significant move by reducing its stake in the company by 14.2%. Van ECK Associates Corp is a global investment management company with a diverse portfolio of assets, including stocks, commodities, and more. The decision to decrease its shareholdings in Weatherford International comes as no surprise given the recent challenges faced by the oil and gas industry. This reduction in stake is an indicator of Van ECK Associates Corp’s lack of confidence in the company’s future performance. While the exact reasons for this move are unknown, it could be due to concerns over Weatherford International’s financial stability and ability to weather the current economic climate. Weatherford International has been facing financial difficulties for some time, with net losses in the past several quarters and a high level of debt. The company has also undergone multiple leadership changes and restructuring efforts in recent years to improve its financial standing. Despite these challenges, Weatherford International remains optimistic about its future and continues to work towards a stronger and more sustainable business model. The company has recently announced plans to divest non-core assets and focus on its core businesses, which could potentially lead to improved financial performance in the long run.
However, it remains to be seen how this move will impact Weatherford International’s future and if the company can successfully navigate through these difficult times.
Analysis
After conducting a thorough analysis of WEATHERFORD INTERNATIONAL, I have determined that this company is classified as a ‘cheetah’ on the Star Chart. This means that while the company has achieved high revenue or earnings growth, it may be considered less stable due to lower profitability. This may make WEATHERFORD INTERNATIONAL an attractive option for investors looking for potential growth opportunities, but may also pose a higher level of risk. Investors who are interested in companies like WEATHERFORD INTERNATIONAL are typically seeking potential for high returns on their investments. They may also be willing to take on a higher level of risk in exchange for the potential for greater rewards. These types of investors may have a higher risk tolerance and be more comfortable with fluctuations in stock prices. In terms of its overall wellness, WEATHERFORD INTERNATIONAL has an intermediate health score of 6/10. This score takes into account the company’s cashflows and debt, and suggests that WEATHERFORD INTERNATIONAL may be able to safely ride out any crisis without the risk of bankruptcy. While this is a positive sign, it is important for investors to carefully consider the potential risks involved before making any investment decisions. Upon further analysis, I have found that WEATHERFORD INTERNATIONAL is strong in terms of its assets and growth potential. This indicates that the company has valuable assets and has the potential for future growth. However, its profitability is only considered medium, which may pose some concerns for investors. Additionally, WEATHERFORD INTERNATIONAL is weak in terms of dividend, meaning that it may not offer regular payouts to its shareholders. Overall, WEATHERFORD INTERNATIONAL presents itself as a ‘cheetah’ on the Star Chart, with potential for high growth but also some risks to consider. It may be an attractive option for certain types of investors who are willing to take on a higher level of risk in exchange for potential rewards. However, it is important for investors to carefully evaluate their own risk tolerance and thoroughly research the company before making any investment decisions. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Weatherford International. More…
| Total Revenues | Net Income | Net Margin |
| 5.13k | 417 | 9.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Weatherford International. More…
| Operations | Investing | Financing |
| 832 | -289 | -514 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Weatherford International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.07k | 4.15k | 12.81 |
Key Ratios Snapshot
Some of the financial key ratios for Weatherford International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.7% | 83.7% | 13.4% |
| FCF Margin | ROE | ROA |
| 12.1% | 51.6% | 8.5% |
Peers
The company competes with United Drilling Tools Ltd, Parker Drilling Co, and Northern Ocean Ltd.
– United Drilling Tools Ltd ($BSE:522014)
United Drilling Tools Ltd is a publicly traded company with a market cap of 6.21 billion as of 2022. The company has a return on equity of 14.87%. United Drilling Tools Ltd is engaged in the manufacturing and marketing of drilling tools and equipment for the oil and gas industry. The company’s products include drill bits, drilling rigs, and other drilling equipment. United Drilling Tools Ltd is headquartered in Houston, Texas.
– Parker Drilling Co ($OTCPK:PKDC)
The Parker Drilling Company is a publicly traded drilling contractor headquartered in Houston, Texas. Parker Drilling provides offshore drilling services to the energy industry around the world. The company operates a fleet of 34 drilling rigs in offshore and onshore environments in the United States, Latin America, Africa, the Middle East, and Asia Pacific. Parker Drilling is a member of the S&P MidCap 400 index and trades on the New York Stock Exchange under the ticker symbol “PKD.”
– Northern Ocean Ltd ($OTCPK:NTNOF)
North Ocean Ltd is a market leader in providing marine transportation and offshore drilling services. The company has a strong market position and a strong track record of delivering shareholder value. North Ocean has a market capitalization of 108.58M as of 2022 and a return on equity of -7.31%. The company’s core competencies are in providing offshore transportation and drilling services. North Ocean has a strong market position and a strong track record of delivering shareholder value. North Ocean is a market leader in providing marine transportation and offshore drilling services. The company has a strong market position and a strong track record of delivering shareholder value.
Summary
Van ECK Associates Corp, a major investment firm, reduced its investments in Weatherford International plc by 14.2% during the third quarter. This may indicate that the firm has less confidence in the company’s performance and future prospects. This decrease in ownership could also suggest that the firm may be reallocating its funds to other investments that it believes will provide better returns.
This news could potentially impact the stock price and investor sentiment towards Weatherford International. Investors may want to closely monitor any further changes in ownership of the company by Van ECK Associates Corp for potential insights into the company’s financial health and future growth potential.
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