Baxter International (NYSE:BAX) Hits New 52-Week Low After Earnings Miss

Key Points

• Baxter International reached a new 52-week low of $22.98 after reporting weaker-than-expected earnings, with an EPS of $0.59 compared to the analyst estimate of $0.60.
• The company declared a quarterly dividend of $0.17 per share, contributing to an annualized dividend yield of 2.90% despite a negative net margin of 4.71%.
• Equities analysts have downgraded Baxter International's price targets, with ratings ranging from "sell" to "buy," reflecting mixed sentiment after the recent earnings announcement.

Baxter International Inc. (NYSE:BAX - Get Free Report) shares reached a new 52-week low during mid-day trading on Thursday following a dissappointing earnings announcement. The company traded as low as $24.73 and last traded at $22.98, with a volume of 139193 shares trading hands. The stock had previously closed at $28.05.

The medical instruments supplier reported $0.59 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.60 by ($0.01). Baxter International had a positive return on equity of 16.93% and a negative net margin of 1.42%. The business had revenue of $2.81 billion for the quarter, compared to analyst estimates of $2.82 billion. During the same quarter in the prior year, the firm posted $0.68 earnings per share. The business's quarterly revenue was up 4.3% on a year-over-year basis.

Baxter International Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, August 29th will be given a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 3.0%. The ex-dividend date is Friday, August 29th. Baxter International's dividend payout ratio (DPR) is currently -226.67%.

Analyst Upgrades and Downgrades

BAX has been the subject of several recent analyst reports. Wells Fargo & Company decreased their price objective on shares of Baxter International from $33.00 to $24.00 and set an "equal weight" rating for the company in a report on Friday. Morgan Stanley decreased their price objective on shares of Baxter International from $28.00 to $27.00 and set an "underweight" rating for the company in a report on Tuesday, July 15th. Evercore ISI decreased their price objective on shares of Baxter International from $44.00 to $42.00 and set an "outperform" rating for the company in a report on Tuesday, July 8th. Wall Street Zen cut shares of Baxter International from a "buy" rating to a "hold" rating in a report on Saturday. Finally, UBS Group reduced their target price on shares of Baxter International from $35.00 to $24.00 and set a "neutral" rating for the company in a report on Monday. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $30.67.

Institutional Investors Weigh In On Baxter International

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BAX. Zions Bancorporation National Association UT purchased a new stake in Baxter International in the 1st quarter worth approximately $27,000. Rossby Financial LCC purchased a new stake in Baxter International in the 1st quarter worth approximately $29,000. Creative Financial Designs Inc. ADV raised its holdings in shares of Baxter International by 169.6% during the 2nd quarter. Creative Financial Designs Inc. ADV now owns 984 shares of the medical instruments supplier's stock valued at $30,000 after purchasing an additional 619 shares in the last quarter. MassMutual Private Wealth & Trust FSB raised its holdings in shares of Baxter International by 48.1% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 2,021 shares of the medical instruments supplier's stock valued at $69,000 after purchasing an additional 656 shares in the last quarter. Finally, Whittier Trust Co. raised its holdings in shares of Baxter International by 82.2% during the 2nd quarter. Whittier Trust Co. now owns 3,202 shares of the medical instruments supplier's stock valued at $97,000 after purchasing an additional 1,445 shares in the last quarter. Hedge funds and other institutional investors own 90.19% of the company's stock.

Baxter International Stock Up 2.0%

The firm has a market cap of $11.50 billion, a P/E ratio of -74.70, a P/E/G ratio of 0.71 and a beta of 0.59. The business's fifty day moving average price is $29.52 and its two-hundred day moving average price is $31.03. The company has a current ratio of 2.02, a quick ratio of 1.40 and a debt-to-equity ratio of 1.33.

About Baxter International

Baxter International Inc, through its subsidiaries, develops and provides a portfolio of healthcare products worldwide. The company operates through four segments: Medical Products and Therapies, Healthcare Systems and Technologies, Pharmaceuticals, and Kidney Care. The company offers sterile intravenous (IV) solutions; infusion systems and devices; parenteral nutrition therapies; generic injectable pharmaceuticals; surgical hemostat and sealant products, advanced surgical equipment; smart bed systems; patient monitoring and diagnostic technologies; and respiratory health devices, as well as advanced equipment for the surgical space, including surgical video technologies, precision positioning devices, and other accessories.