Should You Now Sell Your Nabors Industries (NBR) Position?

Miller Value Partners, an investment management firm, published its “Miller Deep Value Strategy” fourth quarter 2021 investor letter – a copy of which can be seen here. For the fourth quarter, the Deep Value Strategy was down 8.3%, significantly more than the overall market and the S&P 1500 Value Index. For the year, the Deep Value Strategy was up 57.8%, well ahead of the Value Index and the overall market. 2021 marks the 3rd year in a row that the Strategy has generated investment returns greater than 50%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Miller Value Partners Deep Value Strategy, in its Q4 2021 investor letter, mentioned Nabors Industries Ltd. (NYSE: NBR) and discussed its stance on the firm. Nabors Industries Ltd. is a Hamilton, Bermuda-based oil and gas drilling company with a $934.4 million market capitalization. NBR delivered a 39.83% return since the beginning of the year, while its 12-month returns are up by 51.57%. The stock closed at $113.39 per share on February 2, 2022.

Here is what Miller Value Partners Deep Value Strategy has to say about Nabors Industries Ltd. in its Q4 2021 investor letter:

“During the quarter our two largest detractors (includes) Nabors Industries (NBR), both down more than 20%. Nabors Industries’ share price was negatively impacted by the short-term pullback in energy prices. Late in the quarter, Nabors management held their first analyst meeting in over 5 years. We believe Nabors is well-positioned to benefit from higher energy prices and greater demand in their global high spec rig fleet. In addition, the company’s Nabors Drilling Solutions (NDS) segment is a significant hidden technology service asset that we highlighted in previous letters. We believe Nabors shares remain very attractive. The last time oil prices were at current levels Nabors generated EBITDA greater than $800M, much higher than the company’s market capitalization at year-end!”

Pixabay/Public Domain

Our calculations show that Nabors Industries Ltd. (NYSE: NBR) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. NBR was in 16 hedge fund portfolios at the end of the third quarter of 2021, compared to 15 funds in the previous quarter. Nabors Industries Ltd. (NYSE: NBR) delivered a 10.27% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on NBR in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.