Baxter International (NYSE:BAX) Shares Gap Up Following Strong Earnings

Baxter International Inc. (NYSE:BAX)’s share price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $30.82, but opened at $33.29. Baxter International shares last traded at $33.23, with a volume of 1,512,522 shares traded.

The medical instruments supplier reported $0.58 earnings per share for the quarter, beating analysts’ consensus estimates of $0.52 by $0.06. Baxter International had a return on equity of 18.30% and a net margin of 0.77%. The company had revenue of $2.75 billion for the quarter, compared to the consensus estimate of $2.67 billion.

Baxter International Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 1st. Investors of record on Friday, February 28th will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 2.01%. The ex-dividend date is Friday, February 28th. Baxter International’s payout ratio is currently 340.02%.

Wall Street Analyst Weigh In

Several brokerages have weighed in on BAX. JPMorgan Chase & Co. lowered their price target on Baxter International from $38.00 to $36.00 and set a “neutral” rating for the company in a report on Friday. StockNews.com downgraded Baxter International from a “buy” rating to a “hold” rating in a report on Monday, November 11th. Citigroup lowered their price target on Baxter International from $37.00 to $35.00 and set a “neutral” rating for the company in a report on Wednesday, December 11th. Barclays began coverage on Baxter International in a report on Thursday. They issued an “overweight” rating and a $39.00 price target for the company. Finally, Stifel Nicolaus lowered their price target on Baxter International from $46.00 to $38.00 and set a “buy” rating for the company in a report on Monday, November 11th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and three have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $38.80.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of BAX. CoreFirst Bank & Trust purchased a new position in shares of Baxter International in the fourth quarter worth about $26,000. Riverview Trust Co raised its stake in shares of Baxter International by 5,488.2% in the fourth quarter. Riverview Trust Co now owns 950 shares of the medical instruments supplier’s stock worth $28,000 after purchasing an additional 933 shares during the last quarter. Fortitude Family Office LLC purchased a new position in shares of Baxter International in the third quarter worth about $38,000. LRI Investments LLC raised its stake in shares of Baxter International by 60.8% in the third quarter. LRI Investments LLC now owns 1,560 shares of the medical instruments supplier’s stock worth $59,000 after purchasing an additional 590 shares during the last quarter. Finally, Cromwell Holdings LLC purchased a new position in shares of Baxter International in the third quarter worth about $62,000. 90.19% of the stock is currently owned by hedge funds and other institutional investors.

Baxter International Stock Performance

The firm has a 50-day moving average of $30.65 and a two-hundred day moving average of $34.14. The company has a quick ratio of 1.09, a current ratio of 1.43 and a debt-to-equity ratio of 1.31. The company has a market capitalization of $17.29 billion, a PE ratio of 169.33, a PEG ratio of 9.83 and a beta of 0.61.

About Baxter International

Baxter International Inc, through its subsidiaries, develops and provides a portfolio of healthcare products worldwide. The company operates through four segments: Medical Products and Therapies, Healthcare Systems and Technologies, Pharmaceuticals, and Kidney Care. The company offers sterile intravenous (IV) solutions; infusion systems and devices; parenteral nutrition therapies; generic injectable pharmaceuticals; surgical hemostat and sealant products, advanced surgical equipment; smart bed systems; patient monitoring and diagnostic technologies; and respiratory health devices, as well as advanced equipment for the surgical space, including surgical video technologies, precision positioning devices, and other accessories.