Baker Hughes (NASDAQ:BKR) Trading Down 5.9% – Should You Sell?

Baker Hughes Company (NASDAQ:BKR) shares dropped 5.9% on Thursday . The company traded as low as $60.14 and last traded at $59.8970. Approximately 1,614,001 shares traded hands during mid-day trading, a decline of 82% from the average session volume of 8,793,295 shares. The stock had previously closed at $63.64.

Analysts Set New Price Targets

BKR has been the subject of several research analyst reports. Morgan Stanley initiated coverage on shares of Baker Hughes in a report on Friday, August 7th. They issued an “overweight” rating and a $70.00 price target for the company. Royal Bank Of Canada raised their price objective on shares of Baker Hughes from $71.00 to $76.00 and gave the stock an “outperform” rating in a report on Tuesday, August 25th. Zacks Research raised shares of Baker Hughes from a “strong sell” rating to a “hold” rating in a research report on Monday, June 15th. Wall Street Zen lowered shares of Baker Hughes from a “buy” rating to a “hold” rating in a research note on Wednesday, August 5th. Finally, Weiss Ratings downgraded Baker Hughes from a “buy (b)” rating to a “buy (b-)” rating in a research note on Monday, July 13th. Seventeen analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, Baker Hughes currently has an average rating of “Moderate Buy” and a consensus price target of $71.71.

Baker Hughes Price Performance

The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.76 and a current ratio of 2.09. The company has a fifty day moving average price of $60.39 and a two-hundred day moving average price of $61.61. The company has a market cap of $58.76 billion, a P/E ratio of 19.11, a PEG ratio of 2.86 and a beta of 0.96.

Baker Hughes (NASDAQ:BKR) last released its earnings results on Monday, July 27th. The company reported $0.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.51 by $0.13. The business had revenue of $6.74 billion for the quarter, compared to analyst estimates of $6.54 billion. Baker Hughes had a return on equity of 13.85% and a net margin of 11.17%.Baker Hughes’s revenue was up 2.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.63 earnings per share. On average, sell-side analysts anticipate that Baker Hughes Company will post 2.51 earnings per share for the current fiscal year.

Baker Hughes Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 17th. Stockholders of record on Friday, August 7th were paid a dividend of $0.23 per share. The ex-dividend date was Friday, August 7th. This represents a $0.92 dividend on an annualized basis and a dividend yield of 1.6%. Baker Hughes’s dividend payout ratio is currently 29.68%.

Insider Activity at Baker Hughes

In other news, CEO Lorenzo Simonelli sold 181,411 shares of the stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $58.43, for a total value of $10,599,844.73. Following the completion of the sale, the chief executive officer owned 703,444 shares of the company’s stock, valued at approximately $41,102,232.92. This represents a 20.50% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.19% of the company’s stock.

Hedge Funds Weigh In On Baker Hughes

A number of institutional investors have recently added to or reduced their stakes in BKR. MCF Advisors LLC raised its position in Baker Hughes by 121.4% during the second quarter. MCF Advisors LLC now owns 476 shares of the company’s stock worth $26,000 after acquiring an additional 261 shares in the last quarter. EFG International AG acquired a new stake in shares of Baker Hughes in the fourth quarter valued at approximately $26,000. Cullen Frost Bankers Inc. lifted its position in shares of Baker Hughes by 344.1% in the fourth quarter. Cullen Frost Bankers Inc. now owns 604 shares of the company’s stock valued at $27,000 after buying an additional 468 shares during the last quarter. Quarry LP bought a new position in shares of Baker Hughes during the 4th quarter worth approximately $31,000. Finally, MV Capital Management Inc. acquired a new position in shares of Baker Hughes during the 4th quarter worth approximately $34,000. 92.06% of the stock is currently owned by institutional investors and hedge funds.

About Baker Hughes

Baker Hughes Company (NASDAQ: BKR) is an energy technology company that provides products, services and digital solutions for the energy and industrial sectors. Its offerings support the exploration, development, production, transportation and processing of oil and natural gas, as well as broader energy and industrial operations.

The company’s portfolio includes oilfield services and equipment, drilling and completion technologies, artificial lift systems, subsea production solutions, turbomachinery, compressors, gas technology and liquefied natural gas equipment.