HOUSTON—Merad Abdellah, Executive Vice President of Core Services & Equipment at Schlumberger Limited (NYSE:SLB), has sold 60,000 shares of the company's common stock. The shares were sold on October 24 at a price of $41.90 each, totaling approximately $2.51 million.
Following this transaction, Abdellah retains ownership of 211,937 shares, which includes 238 shares acquired through Schlumberger's discounted stock purchase plan as of June 30, 2024.
This sale was disclosed in a filing with the Securities and Exchange Commission, signed by Samantha Blons, attorney-in-fact for Abdellah. Schlumberger, headquartered in Houston, is a leading provider of technology and services to the oil and gas industry.
In other recent news, a group of 52 bipartisan U.S. Representatives has raised concerns about Schlumberger Limited's (SLB) continued operations in Russia amid sanctions. Despite sanctions imposed after Russia's 2022 invasion of Ukraine, SLB has reportedly expanded its activities in the country. Meanwhile, several financial firms have adjusted their outlook on SLB. TD Cowen, Stifel, and Citi have all lowered their price targets for SLB while maintaining positive ratings. Susquehanna has also maintained its positive rating, but lowered its target due to updated estimates.
In terms of financial performance, SLB reported third-quarter adjusted earnings per share at $0.89, with EBITDA at $2.34 billion, and free cash flow (FCF) of $1.8 billion. The company's revenue for the third quarter came in at $9.2 billion, driven by an increase in digital sales within the Digital & Integration division, despite a decline in Well Construction revenue. SLB also repurchased over $500 million worth of shares in the third quarter, reflecting its commitment to shareholder returns. The anticipated sale of the Palliser property in Canada is expected to help SLB exceed its return targets, with projections now set to surpass the $3.0 billion mark in 2024 and its $4.0 billion target in 2025. These are recent developments and it's important to note that these facts are based on past articles.
InvestingPro Insights
The recent insider sale by Merad Abdellah comes at a time when Schlumberger (NYSE:SLB) is experiencing mixed financial signals. According to InvestingPro data, the company's stock is currently trading at a P/E ratio of 13.14, which is relatively low compared to many of its industry peers. This could suggest that the stock might be undervalued, especially considering that Schlumberger has maintained dividend payments for an impressive 54 consecutive years.
InvestingPro Tips highlight that Schlumberger has a perfect Piotroski Score of 9, indicating strong financial health. This score is particularly noteworthy given the cyclical nature of the oil and gas industry. Additionally, the company has raised its dividend for 3 consecutive years, demonstrating a commitment to shareholder returns despite industry volatility.
However, it's worth noting that the stock is trading near its 52-week low, with a year-to-date price total return of -19.25% as of the latest data. This performance may be influencing insider selling decisions, including Abdellah's recent transaction.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips on Schlumberger, providing a deeper understanding of the company's financial position and market outlook.
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