NOV exceeds analysts’ average target

IIn recent trades, shares of NOV Inc (ticker: NOV) exceeded analysts’ 12-month average target price of $17.75, changing hands at $18.32/share. When a stock reaches the target that an analyst has set, the latter logically has two ways of reacting: downgrade on the valuation, or readjust his target price to a higher level. The reaction of analysts may also depend on fundamental business developments that may be responsible for the stock price going higher – if things are looking up for the company, it may be time for that target price to be raised.

There are 12 different analyst targets in Zacks’ coverage universe that contribute to this average for NOV Inc, but the average is just that – a mathematical average. Some analysts have below average targets, including one looking for a price of $14.00. And then, on the other side of the spectrum, an analyst has a target as high as $24.50. The standard deviation is $2.808.

But the whole reason to watch the Medium NOV’s goal in the first place is to tap into a “wisdom of the crowds” effort, bringing together the contributions of all the individual minds that have contributed to the ultimate number, as opposed to what a single particular expert thinks. And so, with NOV surpassing that average target price of $17.75/share, NOV investors received a good signal to spend time evaluating the company and deciding for themselves: is 17, $75 is just one stop on the way to a par higher target, or has the valuation been stretched to the point that it’s time to think about removing some chips from the table? Below is a chart showing the current thinking of analysts who cover NOV Inc:

Recent NOV Analyst Rating Breakdown
» Running 1 month ago 2 months ago 3 months ago
Strong buy odds: 6 7 9 8
Purchase notice: 0 0 0 0
Hold Notes: 6 6 7 8
Sale Ratings: 0 0 0 0
Strong selling odds: 1 0 0 0
Average grade: 2.23 1.92 1.88 2.0

The average rating shown in the last row of the table above ranges from 1 to 5, where 1 is strong buying and 5 is strong selling. This article used data provided by Zacks Investment Research via Get the latest Zacks NOV Research Report — FREE.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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