Institutional Investors Seem Bearish on National Oilwell Varco

Top investors in National Oilwell Varco

The Vanguard Group, Dodge & Cox, and First Eagle Investment Management are the top three institutional investors in National Oilwell Varco (NOV). They own 10.5%, 8.2%, and 7.1%, respectively, of National Oilwell Varco’s outstanding shares. According to the latest filings, Dodge & Cox and First Eagle Investment Management sold net 1.0 million and 44,644 National Oilwell Varco shares, respectively, from their holdings. The Vanguard Group added net 0.4 million National Oilwell Varco shares in the second quarter.

Institutional Investors Seem Bearish on National Oilwell Varco

The above table shows the top institutional investors in National Oilwell Varco and their latest position changes. Together, the top ten investors hold ~54.8% of National Oilwell Varco’s outstanding shares.

Position changes

Collectively, the ten investors sold net 1.6 million National Oilwell Varco shares during the second quarter. A sale of 1.4 million shares by Vulcan Value Partners was the largest position reduction among the top ten investors. Eight of the top ten investors reduced their positions in National Oilwell Varco in the second quarter. The activity likely hints at investors’ bearish sentiment for the stock. As we discussed previously in this series, institutional investors look bearish on other S&P 500 oilfield services stocks as well—Schlumberger (SLB), TechnipFMC (FTI), and Baker Hughes (BHGE).

Notably, Capital Research Global Investors and Pzena Investment Management, not among the top ten investors, bought 6.5 million and 4.4 million National Oilwell Varco shares, respectively, according to the latest filings. Recently, LSV Asset Management and Fidelity Management & Research Company sold 1.8 million and 1.6 million, respectively, National Oilwell Varco shares.

National Oilwell Varco has ~0.4 billion outstanding shares—99.6% are free-floating shares. Institutions own ~97% of National Oilwell Varco’s outstanding shares. National Oilwell Varco forms 6.6% of the iShares US Oil Equipment & Services ETF (IEZ).