Baxter International Inc. (NYSE:BAX) Given Average Recommendation of "Reduce" by Analysts

Key Points

• Analysts maintain a cautious outlook: Thirteen firms give Baxter International an average “Reduce” rating, with three sells, eight holds, and two buys. Their average 12-month price target is $22.45, below the stock’s reported $27.84 price.
• Quarterly results exceeded expectations: Baxter reported adjusted EPS of $0.56 versus the $0.37 consensus estimate and revenue of $2.96 billion versus $2.80 billion expected, with revenue up 5.3% year over year.
• Institutional ownership is substantial: Hedge funds and other institutional investors own 90.19% of the company, while major investors including BlackRock and Pzena Investment Management recently established sizable positions.

Baxter International Inc. (NYSE:BAX - Get Free Report) has earned an average rating of "Reduce" from the thirteen research firms that are currently covering the stock, Marketbeat reports. Three investment analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation and two have issued a buy recommendation on the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $22.4545.

A number of equities research analysts recently issued reports on BAX shares. Barclays boosted their target price on shares of Baxter International from $25.00 to $27.00 and gave the company an "overweight" rating in a report on Friday, May 1st. Weiss Ratings upgraded shares of Baxter International from a "sell (d-)" rating to a "sell (d)" rating in a report on Friday, July 31st. Wells Fargo & Company lifted their price target on shares of Baxter International from $19.00 to $23.00 and gave the company an "equal weight" rating in a report on Friday, July 31st. Citigroup raised shares of Baxter International from a "sell" rating to a "neutral" rating and boosted their price objective for the company from $17.00 to $28.00 in a research note on Friday, July 31st. Finally, The Goldman Sachs Group upped their price objective on Baxter International from $19.00 to $21.00 and gave the stock a "neutral" rating in a report on Wednesday, July 15th.

Hedge Funds Weigh In On Baxter International

A number of large investors have recently modified their holdings of BAX. BlackRock Inc. purchased a new stake in shares of Baxter International during the 2nd quarter worth about $1,744,874,000. Pzena Investment Management LLC purchased a new position in Baxter International in the second quarter valued at approximately $1,392,098,000. Geode Capital Management LLC raised its holdings in Baxter International by 7.8% in the fourth quarter. Geode Capital Management LLC now owns 13,510,205 shares of the medical instruments supplier's stock valued at $257,174,000 after buying an additional 972,891 shares during the period. Ameriprise Financial Inc. lifted its position in Baxter International by 1.3% during the second quarter. Ameriprise Financial Inc. now owns 7,638,629 shares of the medical instruments supplier's stock valued at $231,304,000 after buying an additional 97,687 shares in the last quarter. Finally, Equity Investment Corp acquired a new position in Baxter International during the second quarter valued at approximately $146,815,000. 90.19% of the stock is currently owned by hedge funds and other institutional investors.

Baxter International Stock Up 1.1%

Shares of NYSE:BAX opened at $27.84 on Tuesday. The stock's 50-day moving average price is $22.37 and its two-hundred day moving average price is $19.93. The company has a current ratio of 1.95, a quick ratio of 1.32 and a debt-to-equity ratio of 1.39. Baxter International has a 12-month low of $15.73 and a 12-month high of $30.00. The firm has a market cap of $14.39 billion, a price-to-earnings ratio of -13.45, a PEG ratio of 4.18 and a beta of 0.59.

Baxter International (NYSE:BAX - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The medical instruments supplier reported $0.56 EPS for the quarter, beating analysts' consensus estimates of $0.37 by $0.19. The company had revenue of $2.96 billion during the quarter, compared to the consensus estimate of $2.80 billion. Baxter International had a negative net margin of 9.27% and a positive return on equity of 16.57%. The company's quarterly revenue was up 5.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.59 EPS. Baxter International has set its FY 2026 guidance at 1.950-2.150 EPS. On average, research analysts forecast that Baxter International will post 2.04 EPS for the current year.

Baxter International Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, August 28th will be given a dividend of $0.01 per share. This represents a $0.04 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date of this dividend is Friday, August 28th. Baxter International's payout ratio is -1.93%.

About Baxter International

Baxter International Inc is a global healthcare company that develops, manufactures and markets a broad portfolio of medical products, pharmaceutical therapies and biotechnology-based solutions. The company's primary business activities are organized around renal care, medication delivery, acute therapies, pharmacy automation, surgical care and biotechnology. Baxter's offerings are designed to support patient care in hospitals, dialysis centers, nursing homes and other healthcare facilities worldwide.

In the renal care segment, Baxter provides hemodialysis and peritoneal dialysis systems, water treatment equipment and related disposables, including dialyzers, bloodlines and catheters.

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