Baker Hughes Company (NASDAQ:BKR) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Baker Hughes has a consensus analyst rating of “Moderate Buy” from 22 brokerages, with 18 buy ratings and 4 holds. The average 12-month price target is about $70.14.
• The company recently won major LNG and power-related contracts, including awards tied to Cheniere’s Sabine Pass expansion and a multi-year agreement with Kodiak Gas Services to support U.S. data center growth. These deals strengthen Baker Hughes’ exposure to LNG and AI-driven electricity demand.
• Despite the positive outlook, there has been some pressure from insider selling and a report of a facility closure and layoffs. Baker Hughes also reported quarterly earnings that beat EPS estimates, though revenue came in slightly below expectations.

Baker Hughes Company (NASDAQ:BKR - Get Free Report) has received an average rating of "Moderate Buy" from the twenty-two brokerages that are presently covering the firm, MarketBeat.com reports. Four analysts have rated the stock with a hold recommendation and eighteen have assigned a buy recommendation to the company. The average 12 month price target among analysts that have issued a report on the stock in the last year is $70.1364.

A number of equities research analysts have commented on BKR shares. Stifel Nicolaus lifted their target price on shares of Baker Hughes from $63.00 to $74.00 and gave the stock a "buy" rating in a research report on Monday, April 27th. Weiss Ratings reissued a "buy (b)" rating on shares of Baker Hughes in a report on Friday, April 24th. Zacks Research upgraded Baker Hughes from a "strong sell" rating to a "hold" rating in a research note on Monday, June 15th. Argus lifted their price objective on Baker Hughes from $67.00 to $79.00 in a report on Friday, May 1st. Finally, Citigroup lifted their price objective on Baker Hughes from $74.00 to $75.00 and gave the stock a "buy" rating in a report on Wednesday.

Key Headlines Impacting Baker Hughes

Here are the key news stories impacting Baker Hughes this week:

• Positive Sentiment: Baker Hughes announced substantial equipment and services awards for Cheniere’s Sabine Pass LNG expansion, including liquefaction equipment, compressors, gas turbines, and upgrade work. The deal reinforces Baker Hughes’ LNG exposure and adds visibility to future revenue. Baker Hughes Secures Substantial Equipment and Services Awards for Cheniere’s Sabine Pass LNG Facility
• Positive Sentiment: Baker Hughes also expanded its power-growth strategy with a multi-year agreement with Kodiak Gas Services to support U.S. data center demand, including a pathway to roughly 1.8 GW of power over time. Investors may view this as another sign the company is benefiting from the AI-driven electricity buildout. Kodiak Gas Services, Baker Hughes Announce Multi-Year Gas Turbine Order Agreement to Support U.S. Data Center Growth
• Positive Sentiment: Wolfe Research initiated coverage with an “outperform” rating and a $70 price target, while other firms including Susquehanna and TD Cowen also highlighted upside through target and rating updates. That steady analyst support can help reinforce bullish sentiment. Baker Hughes coverage and price target update
• Positive Sentiment: Reports that Baker Hughes is set to win conditional E.U. approval for its Chart Industries deal could remove an overhang tied to the transaction and improve the market’s confidence in the acquisition path. Baker Hughes set to win conditional E.U. approval for Chart Industries deal
• Neutral Sentiment: Several articles framed Baker Hughes as positioned to benefit from the broader energy transition and shifting power demand, but these were more thematic than company-specific catalysts. Can Baker Hughes Benefit From the Energy Shift?
• Neutral Sentiment: A separate note said Baker Hughes had a strong prior-session move and that earnings estimate revisions could limit near-term upside. This is more of a valuation/expectations check than a direct negative catalyst. Baker Hughes (BKR) Soars 5.7%: Is Further Upside Left in the Stock?
• Negative Sentiment: One headline said Baker Hughes is closing a facility and laying off employees, which could raise concerns about restructuring costs or demand conditions, though details were limited. HBJ: Baker Hughes closing facility, laying off employees

Insider Transactions at Baker Hughes

In related news, CAO Rebecca L. Charlton sold 5,088 shares of the firm's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $64.22, for a total value of $326,751.36. Following the transaction, the chief accounting officer owned 15,997 shares of the company's stock, valued at approximately $1,027,327.34. This trade represents a 24.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lorenzo Simonelli sold 181,411 shares of the business's stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $58.43, for a total transaction of $10,599,844.73. Following the sale, the chief executive officer owned 703,444 shares of the company's stock, valued at $41,102,232.92. This trade represents a 20.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 367,910 shares of company stock valued at $22,420,797. Corporate insiders own 0.19% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. EFG International AG purchased a new stake in shares of Baker Hughes in the 4th quarter worth $26,000. Cullen Frost Bankers Inc. lifted its position in Baker Hughes by 344.1% during the fourth quarter. Cullen Frost Bankers Inc. now owns 604 shares of the company's stock valued at $27,000 after purchasing an additional 468 shares in the last quarter. Quarry LP purchased a new position in Baker Hughes during the fourth quarter valued at $31,000. MV Capital Management Inc. bought a new stake in Baker Hughes during the fourth quarter valued at about $34,000. Finally, Acumen Wealth Advisors LLC bought a new stake in Baker Hughes during the fourth quarter valued at about $35,000. Hedge funds and other institutional investors own 92.06% of the company's stock.

Baker Hughes Price Performance

BKR opened at $57.20 on Friday. The company's 50-day simple moving average is $62.00 and its two-hundred day simple moving average is $59.14. The company has a debt-to-equity ratio of 0.79, a quick ratio of 1.77 and a current ratio of 2.13. The stock has a market capitalization of $56.75 billion, a P/E ratio of 18.27, a P/E/G ratio of 2.06 and a beta of 0.96. Baker Hughes has a 52-week low of $38.37 and a 52-week high of $70.41.

Baker Hughes (NASDAQ:BKR - Get Free Report) last announced its quarterly earnings results on Thursday, April 23rd. The company reported $0.58 EPS for the quarter, topping analysts' consensus estimates of $0.49 by $0.09. Baker Hughes had a net margin of 11.17% and a return on equity of 14.17%. The firm had revenue of $6.59 billion during the quarter, compared to analyst estimates of $6.71 billion. During the same period in the previous year, the business posted $0.51 earnings per share. The business's revenue for the quarter was up 2.5% on a year-over-year basis. As a group, analysts predict that Baker Hughes will post 2.29 EPS for the current year.

Baker Hughes Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Tuesday, May 5th were given a $0.23 dividend. This represents a $0.92 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend was Tuesday, May 5th. Baker Hughes's dividend payout ratio (DPR) is presently 29.39%.

About Baker Hughes

Baker Hughes is an energy technology company that provides a broad portfolio of products, services and digital solutions for the oil and gas and industrial markets. Its offerings span oilfield services and equipment — including drilling, evaluation, completion and production technologies — as well as turbomachinery, compressors and related process equipment used in midstream and downstream operations. The company also supplies aftermarket services, field support and integrated solutions designed to improve asset performance and uptime across the energy value chain.

The firm's roots trace back to the merger of Baker International and Hughes Tool Company, and more recently it combined with GE's oil and gas business in 2017 to form Baker Hughes, a GE company (BHGE); subsequent changes in ownership restored Baker Hughes as an independent publicly traded company.

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