Baker Hughes (NASDAQ:BKR) Announces Quarterly Earnings Results

Key Points

• Baker Hughes exceeded quarterly expectations, reporting adjusted EPS of $0.64 versus the $0.49 consensus estimate and revenue of $6.74 billion compared with expectations of $6.51 billion.
• BKR shares opened at $57.25, while analysts maintained a favorable outlook: 18 analysts rated the stock Buy and four rated it Hold, producing a consensus rating of Moderate Buy and a $70 target price.
• Institutional investors own 92.06% of Baker Hughes, with several major funds increasing their stakes. Meanwhile, insiders sold 367,910 shares worth $22.4 million during the last quarter, including significant sales by the CEO and chief accounting officer under pre-arranged trading plans.

Baker Hughes (NASDAQ:BKR - Get Free Report) released its earnings results on Monday. The company reported $0.64 EPS for the quarter, topping the consensus estimate of $0.49 by $0.15, FiscalAI reports. The firm had revenue of $6.74 billion during the quarter, compared to analysts' expectations of $6.51 billion. Baker Hughes had a net margin of 11.17% and a return on equity of 14.17%.

Baker Hughes Stock Performance

BKR stock opened at $57.25 on Monday. The company has a quick ratio of 1.77, a current ratio of 2.13 and a debt-to-equity ratio of 0.79. The company has a market cap of $56.80 billion, a price-to-earnings ratio of 18.29, a PEG ratio of 2.38 and a beta of 0.96. The business has a fifty day simple moving average of $60.00 and a 200-day simple moving average of $59.97. Baker Hughes has a 52 week low of $41.96 and a 52 week high of $70.41.

Insiders Place Their Bets

In other news, CAO Rebecca L. Charlton sold 5,088 shares of the firm's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $64.22, for a total value of $326,751.36. Following the transaction, the chief accounting officer directly owned 15,997 shares in the company, valued at $1,027,327.34. This trade represents a 24.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lorenzo Simonelli sold 181,411 shares of Baker Hughes stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $58.43, for a total value of $10,599,844.73. Following the completion of the transaction, the chief executive officer directly owned 703,444 shares in the company, valued at $41,102,232.92. This represents a 20.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 367,910 shares of company stock worth $22,420,797 in the last quarter. 0.19% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of BKR. Price T Rowe Associates Inc. MD lifted its stake in shares of Baker Hughes by 58.2% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 11,635,780 shares of the company's stock worth $529,896,000 after acquiring an additional 4,278,573 shares in the last quarter. Merewether Investment Management LP grew its stake in Baker Hughes by 359.7% during the 3rd quarter. Merewether Investment Management LP now owns 2,165,846 shares of the company's stock valued at $105,520,000 after purchasing an additional 1,694,700 shares in the last quarter. Marshall Wace LLP increased its holdings in Baker Hughes by 219.7% during the 3rd quarter. Marshall Wace LLP now owns 2,177,063 shares of the company's stock worth $106,067,000 after purchasing an additional 1,495,996 shares during the last quarter. Caisse de depot et placement du Quebec increased its holdings in Baker Hughes by 67.3% during the 4th quarter. Caisse de depot et placement du Quebec now owns 3,005,647 shares of the company's stock worth $136,877,000 after purchasing an additional 1,208,999 shares during the last quarter. Finally, Invesco Ltd. raised its position in shares of Baker Hughes by 8.4% in the 4th quarter. Invesco Ltd. now owns 12,698,549 shares of the company's stock valued at $578,292,000 after purchasing an additional 982,179 shares in the last quarter. 92.06% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on BKR shares. Stifel Nicolaus raised their price objective on Baker Hughes from $63.00 to $74.00 and gave the stock a "buy" rating in a report on Monday, April 27th. Zacks Research upgraded Baker Hughes from a "strong sell" rating to a "hold" rating in a research note on Monday, June 15th. Wolfe Research began coverage on Baker Hughes in a research report on Wednesday, July 8th. They set an "outperform" rating and a $70.00 target price on the stock. TD Cowen raised their price target on Baker Hughes from $75.00 to $77.00 and gave the stock a "buy" rating in a research note on Thursday, July 2nd. Finally, Jefferies Financial Group reaffirmed a "buy" rating on shares of Baker Hughes in a research note on Thursday, July 9th. Eighteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, Baker Hughes currently has a consensus rating of "Moderate Buy" and a consensus target price of $70.00.

Baker Hughes Company Profile

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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