Baker Hughes (NASDAQ:BKR) Trading 9.8% Higher Following Better-Than-Expected Earnings

Baker Hughes Company (NASDAQ:BKR - Get Free Report) shares were up 9.8% during trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $43.84 and last traded at $43.94. Approximately 9,934,247 shares changed hands during mid-day trading, an increase of 36% from the average daily volume of 7,285,107 shares. The stock had previously closed at $40.02.

The company reported $0.63 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.08. Baker Hughes had a return on equity of 14.56% and a net margin of 11.04%. The firm had revenue of $6.91 billion during the quarter, compared to analyst estimates of $6.64 billion. During the same period last year, the company posted $0.57 EPS. The business's quarterly revenue was down 3.2% on a year-over-year basis.

Baker Hughes Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 15th. Stockholders of record on Tuesday, August 5th will be paid a $0.23 dividend. The ex-dividend date of this dividend is Tuesday, August 5th. This represents a $0.92 annualized dividend and a dividend yield of 2.00%. Baker Hughes's dividend payout ratio is presently 30.07%.

Analyst Ratings Changes

A number of equities analysts have issued reports on BKR shares. Susquehanna lifted their price target on Baker Hughes from $46.00 to $52.00 and gave the company a "positive" rating in a research note on Thursday. The Goldman Sachs Group cut their price target on Baker Hughes from $42.00 to $41.00 and set a "buy" rating for the company in a research note on Wednesday, July 2nd. TD Securities cut their target price on Baker Hughes from $50.00 to $49.00 and set a "buy" rating on the stock in a research note on Thursday, April 24th. Stifel Nicolaus cut their target price on Baker Hughes from $50.00 to $49.00 and set a "buy" rating on the stock in a research note on Wednesday, July 16th. Finally, Morgan Stanley lowered their price target on shares of Baker Hughes from $55.00 to $45.00 and set an "overweight" rating on the stock in a report on Friday, May 16th. Two investment analysts have rated the stock with a hold rating and eighteen have issued a buy rating to the company's stock. Based on data from MarketBeat.com, Baker Hughes has a consensus rating of "Moderate Buy" and an average price target of $49.50.

Insider Buying and Selling

In related news, CEO Lorenzo Simonelli sold 526,568 shares of the firm's stock in a transaction on Wednesday, July 23rd. The stock was sold at an average price of $44.42, for a total value of $23,390,150.56. Following the completion of the sale, the chief executive officer directly owned 667,593 shares in the company, valued at $29,654,481.06. This trade represents a 44.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.27% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Baker Hughes

Hedge funds have recently modified their holdings of the business. Vanguard Group Inc. raised its stake in shares of Baker Hughes by 0.8% in the 1st quarter. Vanguard Group Inc. now owns 122,118,216 shares of the company's stock valued at $5,367,096,000 after acquiring an additional 924,501 shares during the period. Capital Research Global Investors grew its holdings in shares of Baker Hughes by 0.6% in the fourth quarter. Capital Research Global Investors now owns 27,687,590 shares of the company's stock valued at $1,135,744,000 after purchasing an additional 177,232 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of Baker Hughes by 1.9% in the fourth quarter. Geode Capital Management LLC now owns 24,543,925 shares of the company's stock valued at $1,004,212,000 after purchasing an additional 465,832 shares in the last quarter. FMR LLC grew its holdings in shares of Baker Hughes by 12.5% in the fourth quarter. FMR LLC now owns 15,702,057 shares of the company's stock valued at $644,098,000 after purchasing an additional 1,744,225 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its holdings in shares of Baker Hughes by 1.5% in the first quarter. Dimensional Fund Advisors LP now owns 11,727,973 shares of the company's stock valued at $515,367,000 after purchasing an additional 175,495 shares in the last quarter. Hedge funds and other institutional investors own 92.06% of the company's stock.

Baker Hughes Stock Up 0.7%

The company has a quick ratio of 0.93, a current ratio of 1.41 and a debt-to-equity ratio of 0.33. The stock has a market cap of $45.62 billion, a price-to-earnings ratio of 15.05, a PEG ratio of 5.78 and a beta of 0.91. The business's fifty day moving average is $38.89 and its two-hundred day moving average is $40.95.

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.