Noble Stock Down 40% From 2023 Levels as One Investor Trims Lofty Stake

Dallas-based Canyon Capital Advisors reported a reduction in its position in Noble (NYSE:NE) as of its November 14 SEC filing, reflecting a $2 million net position decrease.

What Happened

According to its SEC filing dated November 14, Canyon Capital Advisors reduced its stake in Noble (NYSE:NE) by 158,607 shares in the most recent quarter. The post-trade holding stands at approximately 1.3 million shares worth $36.9 million as of September 30. The fund reported $729.4 million in total reportable U.S. equity assets and 14 positions.

What Else to Know

Top five holdings after the filing:

• NYSE:CBL: $258.9 million (35.5% of AUM)
• NYSE:AMCR: $130.8 million (17.9% of AUM)
• NYSE:SDRL: $127.7 million (17.5% of AUM)
• NYSE:FFWM: $45.4 million (6.2% of AUM)
• NYSE:AMBP: $44.8 million (6.1% of AUM)

As of Monday's market close, Noble shares were priced at $31.35, down 6% over the past year and far underperforming the S&P 500's 13% gain in the same period.

Company Overview

Company Snapshot

Noble is a leading offshore drilling contractor with a global presence and a fleet designed to support complex exploration and production activities. It provides offshore contract drilling services for the oil and gas industry, operating a fleet of mobile offshore drilling units, including floaters and jackups. The company generates revenue primarily through long-term contracts with energy companies for drilling operations in offshore locations worldwide, and it serves major integrated oil and gas producers, independent exploration and production companies, and national oil companies seeking offshore drilling capabilities.

Foolish Take

Noble’s retreat from its 2023 highs almost surely continues to reshape how long-term investors think about the offshore driller’s trajectory. Canyon Capital’s latest move underscores that sentiment: Even after another quarter of improving backlog and steady cash generation, the fund trimmed its position, suggesting a more selective view of deepwater exposure heading into 2026.

The sale amounted to 158,607 shares, leaving Canyon with roughly 1.3 million shares worth $36.9 million at quarter-end. Noble remains a mid-sized holding within a concentrated portfolio dominated by CBL, Amcor, and Seadrill—three positions that collectively account for more than 70% of reported assets. That context matters: Since Canyon seemingly tends to lean heavily into high-conviction bets, even a modest reduction can signal a recalibration rather than a broader negative call.

Operationally, Noble posted a third-quarter net loss of $21 million but generated strong free cash flow of $139 million and secured $740 million in new contract awards since an August report, lifting the firm's backlog to $7 billion. Management also reaffirmed full-year revenue and EBITDA guidance and maintained its $0.50 per-share dividend.

Ultimately, the key question is whether Noble’s growing backlog and disciplined capital returns can offset near-term softness—especially with shares still more than 40% below 2023 levels.

Glossary

13F reportable assets under management (AUM): The value of U.S. equity securities a fund must report quarterly to the SEC.
Position: The amount of a particular security or asset held by an investor or fund.
Sell transaction: The act of reducing or closing an investment by selling securities.
Dividend yield: Annual dividends per share divided by the share price, expressed as a percentage.
Jackups: Mobile offshore drilling rigs with legs that can be raised or lowered for stability in shallow waters.
Floaters: Offshore drilling rigs designed to operate in deep water, floating above the seabed.
Integrated oil and gas producers: Companies involved in exploration, production, refining, and distribution of oil and gas.
Independent exploration and production companies: Firms focused solely on finding and extracting oil and gas, not refining or selling it.
National oil companies: State-owned enterprises that control oil and gas resources in their home countries.
Offshore contract drilling services: Providing drilling equipment and crews to explore or extract oil and gas at sea for clients.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amcor Plc. The Motley Fool recommends Noble Plc. The Motley Fool has a disclosure policy.