RPC (RES) Upgraded by Zacks Investment Research to Hold

Zacks Investment Research upgraded shares of RPC (NYSE:RES) from a strong sell rating to a hold rating in a research note released on Friday.

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.”

Other equities research analysts have also issued reports about the company. BMO Capital Markets reaffirmed a buy rating and set a $19.00 target price on shares of RPC in a research report on Wednesday, July 11th. Cowen reaffirmed a hold rating and set a $15.00 target price on shares of RPC in a research report on Thursday, July 26th. Jefferies Financial Group reaffirmed a hold rating and set a $15.00 target price on shares of RPC in a research report on Thursday, July 26th. B. Riley set a $16.00 target price on RPC and gave the company a hold rating in a research report on Thursday, July 26th. Finally, Stifel Nicolaus assumed coverage on RPC in a research report on Monday, September 10th. They set a hold rating and a $15.00 target price for the company. Three investment analysts have rated the stock with a sell rating, sixteen have issued a hold rating and two have given a buy rating to the company. The company currently has an average rating of Hold and a consensus price target of $19.13.

Shares of RES stock traded down $0.15 on Friday, reaching $15.30. 2,114,242 shares of the company’s stock were exchanged, compared to its average volume of 1,827,289. RPC has a 52 week low of $12.96 and a 52 week high of $27.07. The firm has a market capitalization of $3.33 billion, a P/E ratio of 23.18, a P/E/G ratio of 0.92 and a beta of 0.84.

RPC (NYSE:RES) last issued its quarterly earnings results on Wednesday, July 25th. The oil and gas company reported $0.28 earnings per share (EPS) for the quarter, missing the Zacks’ 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 business had revenue of $467.93 million for the quarter, compared to the consensus estimate of $488.40 million. During the same period in the prior year, the business posted $0.20 earnings per share. RPC’s revenue was up 17.3% on a year-over-year basis. On average, equities research analysts anticipate that RPC will post 0.94 earnings per share for the current fiscal year.

Several large investors have recently made changes to their positions in RES. FMR LLC increased its holdings in shares of RPC by 1,637.7% in the 2nd quarter. FMR LLC now owns 1,127,761 shares of the oil and gas company’s stock valued at $16,431,000 after acquiring an additional 1,062,861 shares during the period. Royce & Associates LP increased its holdings in shares of RPC by 375.0% in the 2nd quarter. Royce & Associates LP now owns 1,170,891 shares of the oil and gas company’s stock valued at $17,060,000 after acquiring an additional 924,379 shares during the period. Russell Investments Group Ltd. grew its stake in RPC by 3,444.3% during the 1st quarter. Russell Investments Group Ltd. now owns 571,513 shares of the oil and gas company’s stock worth $10,228,000 after buying an additional 555,388 shares during the last quarter. BTIM Corp. purchased a new position in RPC during the 2nd quarter worth $7,306,000. Finally, Dimensional Fund Advisors LP grew its stake in RPC by 29.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,506,058 shares of the oil and gas company’s stock worth $27,154,000 after buying an additional 344,919 shares during the last quarter. Institutional investors and hedge funds own 31.74% of the company’s stock.

About RPC

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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