Baxter International Inc. (BAX) Downgraded by Zacks Investment Research to “Hold”
According to Zacks, “We believe Baxter is gaining prominence with a series of strategic developments that include the recent launch of NUMETA G13E in Europe for vulnerable preterm newborns. Also the strategic tie-up with Satellite Healthcare and the Sigma spectrum infusion system keeps us bullish about the company. However, intense competition in the medical products segment and unimpressive hospital spending environment are major concerns. Moreover, lower cyclophosphamide sales poise threats to the Integrated Pharmacy Solutions franchise business of Baxter, as sales in this segment is expected to drop by low-single digits for the full-year 2016.”
Several other brokerages have also weighed in on BAX. Argus reiterated a hold rating on shares of Baxter International in a research report on Monday, August 15th. RBC Capital Markets reissued a hold rating and set a $50.00 price target (up from $47.00) on shares of Baxter International in a report on Wednesday, July 27th. Royal Bank Of Canada lifted their price target on shares of Baxter International from $47.00 to $50.00 and gave the company a sector perform rating in a report on Wednesday, July 27th. JPMorgan Chase & Co. lifted their price target on shares of Baxter International from $45.00 to $48.00 and gave the company a neutral rating in a report on Wednesday, July 27th. Finally, Goldman Sachs Group Inc. reissued a buy rating on shares of Baxter International in a report on Wednesday, July 6th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and five have given a buy rating to the company. The stock has a consensus rating of Hold and an average target price of $48.25.
Shares of Baxter International (NYSE:BAX) traded down 0.27% during mid-day trading on Thursday, reaching $48.09. 1,515,219 shares of the company were exchanged. The stock has a market capitalization of $26.16 billion, a P/E ratio of 5.52 and a beta of 0.71. The firm has a 50-day moving average price of $47.06 and a 200 day moving average price of $45.30. Baxter International has a 12 month low of $32.92 and a 12 month high of $49.49.
Baxter International (NYSE:BAX) last issued its earnings results on Tuesday, July 26th. The company reported $0.46 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.06. Baxter International had a net margin of 47.74% and a return on equity of 10.70%. The business had revenue of $2.60 billion for the quarter, compared to analyst estimates of $2.51 billion. During the same period in the previous year, the business earned $1.00 EPS. The firm’s revenue was up 4.4% on a year-over-year basis. Equities research analysts anticipate that Baxter International will post $1.73 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Monday, October 3rd. Stockholders of record on Friday, September 2nd were issued a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a dividend yield of 1.08%. The ex-dividend date of this dividend was Wednesday, August 31st. Baxter International’s payout ratio is 5.99%.
Hedge funds and other institutional investors have recently modified their holdings of the company. Stillwater Investment Management LLC raised its position in shares of Baxter International by 3.0% in the third quarter. Stillwater Investment Management LLC now owns 19,967 shares of the company’s stock valued at $950,000 after buying an additional 588 shares during the last quarter. West Oak Capital LLC raised its position in shares of Baxter International by 30.1% in the third quarter. West Oak Capital LLC now owns 6,049 shares of the company’s stock valued at $288,000 after buying an additional 1,400 shares during the last quarter. LVM Capital Management Ltd. MI raised its position in shares of Baxter International by 1,768.5% in the third quarter. LVM Capital Management Ltd. MI now owns 116,480 shares of the company’s stock valued at $8,422,000 after buying an additional 110,246 shares during the last quarter. IFP Advisors Inc raised its position in shares of Baxter International by 0.5% in the second quarter. IFP Advisors Inc now owns 18,075 shares of the company’s stock valued at $817,000 after buying an additional 95 shares during the last quarter. Finally, Colonial Trust Advisors raised its position in shares of Baxter International by 20.7% in the second quarter. Colonial Trust Advisors now owns 25,380 shares of the company’s stock valued at $1,148,000 after buying an additional 4,350 shares during the last quarter. 84.79% of the stock is owned by institutional investors.
Baxter International Company Profile
Baxter International Inc, through its subsidiaries, provides a portfolio of essential renal and hospital products, including home, acute and in-center dialysis; sterile intravenous (IV) solutions; infusion systems and devices; parenteral nutrition; biosurgery products and anesthetics, and pharmacy automation, software and services.
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