Zacks Investment Research Upgrades Baxter International Inc. (BAX) to “Buy”
Baxter International Inc. (NYSE:BAX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Thursday. The firm presently has a $53.00 target price on the stock. Zacks Investment Research’s price objective points to a potential upside of 11.70% from the company’s current price.
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, the strategic tie-up with Satellite Healthcare and the recognition of its Sigma spectrum infusion system as a highly efficient infusion pump in drug library compliance (analysis by KLAS research firm). We believe the launch of AMIA APD system with the SHARESOURCE Connectivity in Canada will expand the company’s international footprint. However, intense competition in the medical products segment and lackluster hospital spending are major concerns. Meanwhile, a glimpse on the estimate trends reveals that estimates are stable for the current year, before the company’s earnings release of third-quarter of fiscal 2016.”
Other research analysts have also recently issued research reports about the company. RBC Capital Markets reaffirmed a “hold” rating and set a $50.00 target price (up previously from $47.00) on shares of Baxter International in a research note on Wednesday, July 27th. Royal Bank Of Canada increased their price target on Baxter International from $47.00 to $50.00 and gave the company a “sector perform” rating in a research report on Wednesday, July 27th. Argus reiterated a “hold” rating on shares of Baxter International in a research report on Monday, August 15th. JPMorgan Chase & Co. increased their price target on Baxter International from $45.00 to $48.00 and gave the company a “neutral” rating in a research report on Wednesday, July 27th. Finally, Goldman Sachs Group Inc. reiterated a “buy” rating on shares of Baxter International in a research report on Wednesday, July 6th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and seven have issued a buy rating to the company. Baxter International presently has an average rating of “Hold” and a consensus target price of $48.17.
Shares of Baxter International (NYSE:BAX) opened at 47.45 on Thursday. Baxter International has a one year low of $33.78 and a one year high of $49.49. The stock has a market cap of $25.81 billion, a PE ratio of 5.45 and a beta of 0.70. The stock’s 50 day moving average price is $47.05 and its 200-day moving average price is $45.57.
Baxter International (NYSE:BAX) last announced its earnings results on Tuesday, July 26th. The company reported $0.46 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.40 by $0.06. Baxter International had a return on equity of 10.70% and a net margin of 47.74%. The business earned $2.60 billion during the quarter, compared to analysts’ expectations of $2.51 billion. During the same quarter last year, the business posted $1.00 earnings per share. The company’s quarterly revenue was up 4.4% on a year-over-year basis. On average, equities analysts predict that Baxter International will post $1.73 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Monday, October 3rd. Stockholders of record on Friday, September 2nd were paid a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.10%. The ex-dividend date of this dividend was Wednesday, August 31st. Baxter International’s dividend payout ratio (DPR) is presently 5.99%.
Several large investors have recently bought and sold shares of the company. Trust Department MB Financial Bank N A increased its position in shares of Baxter International by 4.1% in the second quarter. Trust Department MB Financial Bank N A now owns 1,746 shares of the company’s stock worth $122,000 after buying an additional 68 shares during the last quarter. Checchi Capital Advisers LLC increased its position in shares of Baxter International by 1.9% in the second quarter. Checchi Capital Advisers LLC now owns 4,333 shares of the company’s stock worth $196,000 after buying an additional 81 shares during the last quarter. IFP Advisors Inc increased 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 worth $817,000 after buying an additional 95 shares during the last quarter. Cleararc Capital Inc. increased its position in shares of Baxter International by 1.0% in the second quarter. Cleararc Capital Inc. now owns 12,530 shares of the company’s stock worth $567,000 after buying an additional 120 shares during the last quarter. Finally, Private Trust Co. NA increased its position in shares of Baxter International by 0.5% in the second quarter. Private Trust Co. NA now owns 29,036 shares of the company’s stock worth $1,312,000 after buying an additional 144 shares during the last quarter. 84.38% of the stock is owned by institutional investors.
About Baxter International
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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