Baker Hughes (NASDAQ:BKR) Trading 3.9% Higher on Better-Than-Expected Earnings

Baker Hughes (NASDAQ:BKR)’s stock price shot up 3.9% on Wednesday following a better than expected earnings announcement. The stock traded as high as $37.50 and last traded at $37.37. 3,487,579 shares changed hands 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 for the quarter, topping analysts’ consensus estimates of $0.61 by $0.06. Baker Hughes had a net margin of 7.37% and a return on equity of 12.45%. The company had revenue of $6.91 billion for the quarter, compared to the consensus estimate of $7.21 billion. During the same period in the previous year, the firm earned $0.42 EPS. The firm’s quarterly revenue was up 4.0% on a year-over-year basis.

Baker Hughes Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, November 14th. Stockholders of record on Monday, November 4th will be paid a dividend of $0.21 per share. The ex-dividend date of this dividend is Monday, November 4th. This represents a $0.84 annualized dividend and a dividend yield of 2.27%. Baker Hughes’s payout ratio is currently 46.93%.

Wall Street Analysts Forecast Growth

BKR has been the subject of several research reports. Benchmark reiterated a “buy” rating and set a $40.00 price target on shares of Baker Hughes in a research note on Friday, July 26th. JPMorgan Chase & Co. lifted their target price on shares of Baker Hughes from $42.00 to $43.00 and gave the stock an “overweight” rating in a research note on Monday, July 29th. Evercore ISI upped their price target on shares of Baker Hughes from $42.00 to $46.00 and gave the company an “outperform” rating in a research note on Monday, July 29th. Barclays cut their price objective on shares of Baker Hughes from $42.00 to $41.00 and set an “overweight” rating for the company in a report on Wednesday, October 16th. Finally, Piper Sandler lowered their target price on shares of Baker Hughes from $45.00 to $44.00 and set an “overweight” rating on the stock in a report on Monday, July 15th. Two equities research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $43.59.

Insider Buying and Selling

In related news, CEO Lorenzo Simonelli sold 114,286 shares of the company’s stock in a transaction that occurred on Thursday, August 1st. The shares were sold at an average price of $38.55, for a total value of $4,405,725.30. Following the transaction, the chief executive officer now directly owns 616,339 shares in the company, valued at approximately $23,759,868.45. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.25% of the stock is owned by company insiders.

Institutional Trading of Baker Hughes

A number of hedge funds have recently made changes to their positions in the stock. Redmont Wealth Advisors LLC bought a new stake in Baker Hughes in the 1st quarter worth approximately $27,000. New Covenant Trust Company N.A. bought a new stake in shares of Baker Hughes in the 1st quarter worth approximately $34,000. Alta Advisers Ltd purchased a new stake in shares of Baker Hughes in the 2nd quarter valued at $42,000. Headlands Technologies LLC bought a new position in shares of Baker Hughes during the 2nd quarter valued at $48,000. Finally, Quarry LP raised its position in Baker Hughes by 81.1% in the 2nd quarter. Quarry LP now owns 1,594 shares of the company’s stock worth $56,000 after purchasing an additional 714 shares during the period. 92.06% of the stock is owned by institutional investors.

Baker Hughes Price Performance

The firm’s 50 day simple moving average is $35.61 and its two-hundred day simple moving average is $34.35. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.27 and a quick ratio of 0.86. The firm has a market capitalization of $36.93 billion, a P/E ratio of 20.67, a P/E/G ratio of 0.61 and a beta of 1.38.

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.