MRC Global (NYSE:MRC) Trading Down 6.4% – Should You Sell?

Shares of MRC Global Inc. (NYSE:MRC) were down 6.4% on Thursday . The company traded as low as $13.63 and last traded at $13.59. Approximately 587,516 shares traded hands during mid-day trading, a decline of 11% from the average daily volume of 659,595 shares. The stock had previously closed at $14.52.

Analyst Ratings Changes

Several brokerages have issued reports on MRC. StockNews.com cut MRC Global from a “strong-buy” rating to a “buy” rating in a research report on Saturday, November 9th. Susquehanna boosted their target price on shares of MRC Global from $16.00 to $17.00 and gave the company a “positive” rating in a research report on Thursday, November 7th. Finally, Stifel Nicolaus increased their price target on shares of MRC Global from $14.00 to $15.00 and gave the stock a “buy” rating in a research report on Tuesday, October 15th.

MRC Global Stock Down 4.5 %

The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.11 and a current ratio of 1.99. The company’s 50-day moving average price is $13.66 and its 200 day moving average price is $13.18. The stock has a market capitalization of $1.09 billion, a P/E ratio of 14.69 and a beta of 1.97.

MRC Global (NYSE:MRC) last posted its quarterly earnings results on Tuesday, November 5th. The oil and gas company reported $0.22 EPS for the quarter, beating analysts’ consensus estimates of $0.19 by $0.03. The business had revenue of $797.00 million for the quarter, compared to analysts’ expectations of $794.17 million. MRC Global had a return on equity of 19.58% and a net margin of 3.09%. The business’s quarterly revenue was down 10.2% on a year-over-year basis. During the same period last year, the firm earned $0.32 earnings per share. As a group, equities analysts expect that MRC Global Inc. will post 0.86 earnings per share for the current year.

MRC Global declared that its board has authorized a stock buyback program on Friday, January 3rd that allows the company to repurchase $125.00 million in shares. This repurchase authorization allows the oil and gas company to repurchase up to 11% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

Institutional Investors Weigh In On MRC Global

Institutional investors have recently added to or reduced their stakes in the stock. Empowered Funds LLC bought a new position in shares of MRC Global during the third quarter worth $3,607,000. Barclays PLC lifted its stake in MRC Global by 197.7% in the 3rd quarter. Barclays PLC now owns 151,169 shares of the oil and gas company’s stock worth $1,927,000 after purchasing an additional 100,384 shares in the last quarter. Jennison Associates LLC bought a new position in shares of MRC Global during the 4th quarter valued at about $1,108,000. Wellington Management Group LLP grew its position in shares of MRC Global by 1.8% during the third quarter. Wellington Management Group LLP now owns 3,209,251 shares of the oil and gas company’s stock valued at $40,886,000 after purchasing an additional 55,553 shares in the last quarter. Finally, Pzena Investment Management LLC increased its holdings in shares of MRC Global by 1.0% in the fourth quarter. Pzena Investment Management LLC now owns 5,825,650 shares of the oil and gas company’s stock worth $74,452,000 after purchasing an additional 54,859 shares during the last quarter. 94.97% of the stock is owned by hedge funds and other institutional investors.

About MRC Global

MRC Global Inc, through its subsidiaries, distributes pipes, valves, fittings, and other infrastructure products and services in the United States, Canada, and internationally. It offers ball, butterfly, gate, globe, check, diaphragm, needle, and plug valves; other products, such as lined corrosion resistant piping systems, control valves, valve automation, and top work components; and valve modification services, including valve control extensions, welding, hydrotesting, painting, coating, x-raying, and actuation assembly.