Baker Hughes (NASDAQ:BKR) Stock Price Up 3.9% on Strong Earnings

Baker Hughes (NASDAQ:BKR)’s stock price shot up 3.9% on Wednesday following a better than expected earnings announcement. The company traded as high as $37.50 and last traded at $37.37. 3,487,579 shares were traded during mid-day trading, a decline of 52% from the average session volume of 7,193,402 shares. The stock had previously closed at $35.98.

The company reported $0.67 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.61 by $0.06. The company had revenue of $6.91 billion during the quarter, compared to the consensus estimate of $7.21 billion. Baker Hughes had a return on equity of 12.45% and a net margin of 7.37%. The firm’s revenue was up 4.0% compared to the same quarter last year. During the same period last year, the company earned $0.42 earnings per share.

Baker Hughes Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 16th. Stockholders of record on Tuesday, August 6th were paid a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a dividend yield of 2.25%. The ex-dividend date was Tuesday, August 6th. Baker Hughes’s dividend payout ratio is 46.93%.

Analysts Set New Price Targets

A number of research firms recently issued reports on BKR. Stifel Nicolaus boosted their target price on shares of Baker Hughes from $40.00 to $45.00 and gave the company a “buy” rating in a research report on Monday, July 29th. Jefferies Financial Group increased their price target on Baker Hughes from $46.00 to $48.00 and gave the stock a “buy” rating in a report on Monday, July 29th. Evercore ISI boosted their price objective on Baker Hughes from $42.00 to $46.00 and gave the company an “outperform” rating in a report on Monday, July 29th. The Goldman Sachs Group increased their target price on Baker Hughes from $39.00 to $43.00 and gave the stock a “buy” rating in a report on Monday, July 29th. Finally, Barclays reduced their price target on shares of Baker Hughes from $42.00 to $41.00 and set an “overweight” rating for the company in a research report on Wednesday, October 16th. Two investment analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $43.59.

Insiders Place Their Bets

In related news, CEO Lorenzo Simonelli sold 114,286 shares of the business’s stock in a transaction dated Thursday, August 8th. The stock was sold at an average price of $35.00, for a total transaction of $4,000,010.00. Following the completion of the transaction, the chief executive officer now directly owns 502,053 shares in the company, valued at $17,571,855. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.25% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Redmont Wealth Advisors LLC purchased a new stake in Baker Hughes during the first quarter valued at about $27,000. New Covenant Trust Company N.A. purchased a new stake in Baker Hughes during the 1st quarter valued at about $34,000. Alta Advisers Ltd bought a new position in Baker Hughes during the 2nd quarter worth approximately $42,000. Headlands Technologies LLC bought a new stake in Baker Hughes in the second quarter valued at approximately $48,000. Finally, Quarry LP grew its holdings in shares of Baker Hughes by 81.1% in the second quarter. Quarry LP now owns 1,594 shares of the company’s stock worth $56,000 after purchasing an additional 714 shares during the last quarter. 92.06% of the stock is currently owned by hedge funds and other institutional investors.

Baker Hughes Stock Up 3.8 %

The company has a market capitalization of $37.29 billion, a P/E ratio of 20.10, a price-to-earnings-growth ratio of 0.61 and a beta of 1.38. The company has a current ratio of 1.27, a quick ratio of 0.86 and a debt-to-equity ratio of 0.37. The stock’s fifty day moving average is $35.57 and its 200 day moving average is $34.33.

About Baker Hughes

Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide. The company operates through Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET) segments. The OFSE segment designs and manufactures products and provides related services, including exploration, appraisal, development, production, rejuvenation, and decommissioning for onshore and offshore oilfield operations.