Baker Hughes Inc. (BHI) Upgraded to Buy by Zacks Investment Research
Baker Hughes Inc. (NYSE:BHI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Friday. The firm currently has a $59.00 price objective on the oilfield services provider’s stock. Zacks Investment Research’s price target points to a potential upside of 12.38% from the company’s current price.
According to Zacks, “Baker Hughes has a leading position in the North American oilfield services market and has held up well amid the decline in rig count that has hit activity levels and pricing. The equipment supplier also boasts a strong balance sheet and has been able to implement rigorous cost controls. The break up fee of $3.5 billion that the company received on termination of the merger with Halliburton, gives the companu a number of options to explore, including reinvesting in its business, returning more cash to shareholders, or to potentially make small acquisitions. These are viewed positively as they are value accretive to shareholders. Moreover, Baker Hughes’ relationships with both publicly-traded and national oil companies worldwide remains strong. Consequently, we think Baker Hughes offers substantial upside potential from the current price levels and view it as an attractive investment.”
Several other equities research analysts have also commented on BHI. Citigroup Inc. lifted their price target on shares of Baker Hughes from $56.00 to $62.00 and gave the stock a “buy” rating in a research note on Tuesday. RBC Capital Markets reissued an “outperform” rating and set a $59.00 price objective (up from $50.00) on shares of Baker Hughes in a research report on Monday. Royal Bank Of Canada raised their price objective on shares of Baker Hughes from $50.00 to $59.00 and gave the stock an “outperform” rating in a research report on Monday. Loop Capital assumed coverage on shares of Baker Hughes in a research report on Friday, September 30th. They set a “hold” rating and a $52.00 price objective on the stock. Finally, Nomura raised their price objective on shares of Baker Hughes from $38.00 to $43.00 and gave the stock a “neutral” rating in a research report on Tuesday, August 16th. Two equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating, twenty-one have assigned a buy rating and two have given a strong buy rating to the company’s stock. The company presently has an average rating of “Buy” and an average price target of $53.42.
Shares of Baker Hughes (NYSE:BHI) traded down 1.952% on Friday, hitting $51.475. 1,418,214 shares of the company’s stock were exchanged. The company’s 50-day moving average price is $50.21 and its 200 day moving average price is $46.95. The stock’s market cap is $22.03 billion. Baker Hughes has a 12-month low of $37.58 and a 12-month high of $56.81.
Baker Hughes (NYSE:BHI) last announced its quarterly earnings data on Thursday, July 28th. The oilfield services provider reported ($0.90) earnings per share for the quarter, missing the Zacks’ consensus estimate of ($0.59) by $0.31. Baker Hughes had a negative net margin of 25.14% and a negative return on equity of 4.46%. The firm earned $2.40 billion during the quarter, compared to analyst estimates of $2.34 billion. During the same quarter in the previous year, the business posted ($0.14) earnings per share. Baker Hughes’s revenue for the quarter was down 39.3% compared to the same quarter last year. On average, equities analysts predict that Baker Hughes will post ($2.21) earnings per share for the current fiscal year.
In other news, SVP Alan R. Crain, Jr. sold 7,000 shares of the company’s stock in a transaction on Wednesday, August 3rd. The shares were sold at an average price of $47.01, for a total value of $329,070.00. Following the completion of the transaction, the senior vice president now directly owns 51,385 shares in the company, valued at $2,415,608.85. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Alan R. Crain, Jr. sold 1,226 shares of the company’s stock in a transaction on Monday, August 8th. The shares were sold at an average price of $48.00, for a total transaction of $58,848.00. Following the completion of the transaction, the senior vice president now owns 50,159 shares of the company’s stock, valued at $2,407,632. The disclosure for this sale can be found here. 0.60% of the stock is currently owned by insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Ngam Advisors L.P. increased its position in shares of Baker Hughes by 0.5% in the first quarter. Ngam Advisors L.P. now owns 24,478 shares of the oilfield services provider’s stock valued at $1,073,000 after buying an additional 126 shares during the period. AMF Pensionsforsakring AB boosted its stake in Baker Hughes by 7.0% in the first quarter. AMF Pensionsforsakring AB now owns 296,563 shares of the oilfield services provider’s stock valued at $12,998,000 after buying an additional 19,390 shares in the last quarter. Canada Pension Plan Investment Board boosted its stake in Baker Hughes by 6,389.6% in the first quarter. Canada Pension Plan Investment Board now owns 4,318,139 shares of the oilfield services provider’s stock valued at $189,264,000 after buying an additional 4,251,600 shares in the last quarter. OMERS ADMINISTRATION Corp boosted its stake in Baker Hughes by 28.5% in the first quarter. OMERS ADMINISTRATION Corp now owns 137,400 shares of the oilfield services provider’s stock valued at $6,022,000 after buying an additional 30,500 shares in the last quarter. Finally, BB&T Securities LLC bought a new stake in Baker Hughes during the first quarter valued at about $474,000. Institutional investors and hedge funds own 89.30% of the company’s stock.
Baker Hughes Company Profile
Baker Hughes Incorporated is engaged in the oilfield services industry. The Company is a supplier of oilfield services, products, technology and systems used in the oil and natural gas industry around the world. The Company also provides industrial products and services for other businesses, including downstream chemicals, and process and pipeline services.
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