Barclays Issues Pessimistic Forecast for Baxter International (NYSE:BAX) Stock Price

Key Points

• Barclays has lowered its price target for Baxter International from $41.00 to $36.00, indicating a potential upside of 60.64% from the stock's previous close.
• Other analysts, including Citigroup and Goldman Sachs, have also reduced their price targets for Baxter International, reflecting a generally cautious outlook on the stock.
• Baxter International's stock has shown a slight increase of 2.0% recently, trading at $22.41, amidst a market cap of $11.50 billion and various financial metrics that indicate mixed performance.

Baxter International (NYSE:BAX - Free Report) had its price target decreased by Barclays from $41.00 to $36.00 in a research report released on Monday,Benzinga reports. Barclays currently has an overweight rating on the medical instruments supplier's stock.

Several other analysts have also recently issued reports on BAX. Wall Street Zen cut shares of Baxter International from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Citigroup dropped their price target on shares of Baxter International from $34.00 to $32.00 and set a "neutral" rating on the stock in a research report on Wednesday, July 9th. Stifel Nicolaus reissued a "hold" rating and issued a $25.00 price target (down previously from $36.00) on shares of Baxter International in a research note on Monday. UBS Group dropped their price target on Baxter International from $35.00 to $24.00 and set a "neutral" rating on the stock in a research report on Monday. Finally, Wells Fargo & Company cut their price objective on Baxter International from $33.00 to $24.00 and set an "equal weight" rating on the stock in a research note on Friday, August 1st. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and three have issued a buy rating to the company's stock. According to MarketBeat, Baxter International has an average rating of "Hold" and a consensus target price of $30.11.

Baxter International Stock Performance

BAX traded up $0.21 during trading on Monday, hitting $23.75. 3,024,172 shares of the stock were exchanged, compared to its average volume of 5,189,692. The company has a quick ratio of 1.40, a current ratio of 2.30 and a debt-to-equity ratio of 1.30. Baxter International has a 1-year low of $21.33 and a 1-year high of $40.49. The stock has a fifty day moving average price of $28.90 and a two-hundred day moving average price of $30.81. The firm has a market capitalization of $12.19 billion, a P/E ratio of -79.16, a PEG ratio of 0.73 and a beta of 0.59.

Baxter International (NYSE:BAX - Get Free Report) last released its earnings results on Thursday, July 31st. 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 16.96% 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 previous year, the firm posted $0.68 EPS. The business's revenue for the quarter was up 4.3% on a year-over-year basis. As a group, sell-side analysts predict that Baxter International will post 2.48 earnings per share for the current year.

Baxter International Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Friday, August 29th will be paid a $0.17 dividend. The ex-dividend date is Friday, August 29th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 2.9%. Baxter International's dividend payout ratio (DPR) is -226.67%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Russell Investments Group Ltd. raised its stake in shares of Baxter International by 40.4% in the fourth quarter. Russell Investments Group Ltd. now owns 1,745,709 shares of the medical instruments supplier's stock worth $50,904,000 after acquiring an additional 502,370 shares during the last quarter. Jaffetilchin Investment Partners LLC increased its position in Baxter International by 115,259.6% in the fourth quarter. Jaffetilchin Investment Partners LLC now owns 65,755 shares of the medical instruments supplier's stock worth $1,917,000 after purchasing an additional 65,698 shares during the period. Sterling Capital Management LLC lifted its position in Baxter International by 55.2% during the 4th quarter. Sterling Capital Management LLC now owns 30,264 shares of the medical instruments supplier's stock valued at $882,000 after purchasing an additional 10,768 shares during the period. Anchor Investment Management LLC raised its stake in shares of Baxter International by 79.2% during the fourth quarter. Anchor Investment Management LLC now owns 20,463 shares of the medical instruments supplier's stock worth $597,000 after buying an additional 9,043 shares during the last quarter. Finally, Jump Financial LLC boosted its stake in Baxter International by 1,078.2% in the fourth quarter. Jump Financial LLC now owns 139,028 shares of the medical instruments supplier's stock valued at $4,054,000 after acquiring an additional 127,228 shares during the last quarter. 90.19% of the stock is owned by institutional investors.

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.