Federated Hermes Inc. has significantly increased its investment in Weatherford International PLC, raising its shareholdings by an astonishing 1,005.3% during the second quarter of 2023. According to HoldingsChannel, the firm now holds 1,056,407 shares of Weatherford after acquiring an additional 960,832 shares. The total value of Federated Hermes’s holdings stands at approximately $53.1 million as reported in its most recent filing with the U.S. Securities and Exchange Commission.
This surge in investment highlights a broader trend, as several institutional investors and hedge funds have also adjusted their positions in Weatherford. For instance, Vanguard Group Inc. increased its holdings by 4.5% in the first quarter, bringing its total to 8,050,495 shares valued at around $431.1 million. Similarly, Charles Schwab Investment Management Inc. raised its stake by 6.9%, now owning 808,128 shares worth $43.3 million.
Citigroup Inc. made a notable increase of 96.5% during the same period, acquiring 133,518 shares valued at approximately $7.15 million. Connor Clark & Lunn Investment Management Ltd. also expanded its holdings by 122.8%, while Covestor Ltd. raised its stake by 34.3%. Collectively, institutional investors now own 97.23% of Weatherford’s stock, demonstrating robust confidence in the company’s future.
Weatherford’s Stock Performance and Dividends
As of October 8, 2023, Weatherford International’s stock opened at $77.15. The company has experienced a volatile year, with shares hitting a 12-month low of $36.74 and a high of $81.01. The company boasts a market capitalization of $5.53 billion, a price-to-earnings ratio of 13.98, and a beta of 0.79, indicating lower volatility compared to the market.
Weatherford also recently announced a quarterly dividend of $0.25 per share, paid on December 4, 2023, to stockholders who were on record as of November 6, 2023. This annualized dividend translates to $1.00 with a dividend yield of 1.3%. The company’s dividend payout ratio is reported at 18.12%, reflecting its commitment to returning value to shareholders.
Analyst Ratings and Future Outlook
Recent reports from equities research analysts suggest a positive outlook for Weatherford. Weiss Ratings has maintained a “hold” rating, while BMO Capital Markets initiated coverage with an “outperform” rating and a target price of $82.00. Piper Sandler has raised its target from $79.00 to $80.00, giving the stock an “overweight” rating.
Analysts from Melius have issued a “buy” rating with a target price of $108.00, while Barclays has increased its price target to $81.00. Currently, one analyst has rated the stock as a Strong Buy, eight have issued Buy ratings, and three have assigned a Hold rating. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $87.90.
Weatherford International PLC, headquartered in Switzerland, provides equipment and services for drilling, evaluating, completing, producing, and intervening in oil, geothermal, and natural gas wells across the globe. The company operates through three segments: Drilling and Evaluation; Well Construction and Completions; and Production and Intervention.
As institutional investment in Weatherford continues to grow, the company’s financial health and strategic direction will be closely monitored by market participants and analysts alike.
