MRC Global (NYSE:MRC) Shares Gap Down – Here’s Why

Shares of MRC Global Inc. (NYSE:MRC) gapped down before the market opened on Friday . The stock had previously closed at $11.11, but opened at $10.31. MRC Global shares last traded at $10.06, with a volume of 245,673 shares.

MRC Global Stock Performance

The company has a market capitalization of $935.54 million, a price-to-earnings ratio of 12.61 and a beta of 1.96. The firm has a fifty day simple moving average of $13.23 and a 200 day simple moving average of $13.03. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.99 and a quick ratio of 1.11.

MRC Global (NYSE:MRC) last released its earnings results on Friday, March 14th. The oil and gas company reported $0.08 EPS for the quarter, hitting analysts’ consensus estimates of $0.08. The business had revenue of $736.80 million during the quarter, compared to analysts’ expectations of $726.90 million. MRC Global had a net margin of 3.09% and a return on equity of 19.58%. The company’s quarterly revenue was down 10.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.23 earnings per share. On average, analysts anticipate that MRC Global Inc. will post 0.86 earnings per share for the current fiscal year.

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

Hedge Funds Weigh In On MRC Global

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in MRC Global by 20.6% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 266,690 shares of the oil and gas company’s stock valued at $3,408,000 after purchasing an additional 45,497 shares during the last quarter. Sourcerock Group LLC boosted its stake in MRC Global by 1.6% during the fourth quarter. Sourcerock Group LLC now owns 501,890 shares of the oil and gas company’s stock worth $6,414,000 after buying an additional 7,786 shares during the period. Squarepoint Ops LLC increased its position in shares of MRC Global by 96.8% during the fourth quarter. Squarepoint Ops LLC now owns 22,418 shares of the oil and gas company’s stock valued at $287,000 after acquiring an additional 11,025 shares during the last quarter. State of Wyoming raised its stake in shares of MRC Global by 24.2% in the 4th quarter. State of Wyoming now owns 28,894 shares of the oil and gas company’s stock valued at $369,000 after acquiring an additional 5,623 shares during the period. Finally, Shay Capital LLC purchased a new position in shares of MRC Global during the 4th quarter worth approximately $270,000. Institutional investors and hedge funds own 94.97% of the company’s stock.

MRC Global Company Profile

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.