Baxter International (NYSE:BAX) Sees Strong Trading Volume - Should You Buy?

Key Points

• Baxter International's stock experienced a significant trading volume increase of 31%, with nearly 7 million shares traded, but its stock price has fallen to $24.05 from a previous close of $24.69.
• Analyst ratings have turned bearish, with multiple firms lowering their price targets and rating the stock as "hold" or "underweight," while the consensus rating is currently "hold" with an average target price of $30.11.
• The company recently reported earnings of $0.59 per share, missing estimates, and announced a quarterly dividend of $0.17 per share, reflecting a yield of 2.8% despite a negative dividend payout ratio.

Baxter International Inc. (NYSE:BAX - Get Free Report) shares saw strong trading volume on Tuesday . 6,959,694 shares were traded during trading, an increase of 31% from the previous session's volume of 5,302,831 shares.The stock last traded at $24.05 and had previously closed at $24.69.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Morgan Stanley decreased their target price on Baxter International from $28.00 to $27.00 and set an "underweight" rating on the stock in a research report on Tuesday, July 15th. UBS Group decreased their price objective on Baxter International from $35.00 to $24.00 and set a "neutral" rating on the stock in a report on Monday, August 4th. Evercore ISI decreased their price objective on Baxter International from $44.00 to $42.00 and set an "outperform" rating on the stock in a report on Tuesday, July 8th. Wall Street Zen downgraded Baxter International from a "buy" rating to a "hold" rating in a report on Saturday, August 2nd. Finally, Stifel Nicolaus reaffirmed a "hold" rating and set a $25.00 price objective (down from $36.00) on shares of Baxter International in a report on Monday, August 4th. Three investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Baxter International presently has a consensus rating of "Hold" and an average target price of $30.11.

Baxter International Stock Performance

The company has a current ratio of 2.30, a quick ratio of 1.49 and a debt-to-equity ratio of 1.30. The stock's 50 day moving average price is $26.81 and its 200 day moving average price is $29.91. The company has a market capitalization of $12.38 billion, a price-to-earnings ratio of -80.41, a P/E/G ratio of 0.80 and a beta of 0.60.

Baxter International (NYSE:BAX - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The medical instruments supplier reported $0.59 earnings per share for the quarter, missing the consensus estimate of $0.60 by ($0.01). The company had revenue of $2.81 billion during the quarter, compared to the consensus estimate of $2.82 billion. Baxter International had a negative net margin of 1.42% and a positive return on equity of 16.96%. The firm's revenue was up 4.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.68 earnings per share. Baxter International has set its Q3 2025 guidance at 0.580-0.620 EPS. FY 2025 guidance at 2.420-2.520 EPS. Analysts expect that Baxter International Inc. will post 2.48 earnings per share for the current year.

Baxter International Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, August 29th will be paid a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend is Friday, August 29th. Baxter International's dividend payout ratio (DPR) is currently -226.67%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Dodge & Cox boosted its stake in Baxter International by 2.1% in the first quarter. Dodge & Cox now owns 51,458,925 shares of the medical instruments supplier's stock valued at $1,761,439,000 after acquiring an additional 1,081,631 shares during the last quarter. ARGA Investment Management LP boosted its position in Baxter International by 52.5% during the 1st quarter. ARGA Investment Management LP now owns 1,327,946 shares of the medical instruments supplier's stock valued at $45,456,000 after buying an additional 457,345 shares during the period. GAMMA Investing LLC raised its holdings in Baxter International by 11,821.6% in the 1st quarter. GAMMA Investing LLC now owns 387,689 shares of the medical instruments supplier's stock worth $13,271,000 after purchasing an additional 384,437 shares in the last quarter. Parkwood LLC purchased a new position in Baxter International during the 4th quarter valued at about $10,747,000. Finally, Sound Shore Management Inc. CT increased its stake in Baxter International by 13.7% during the 1st quarter. Sound Shore Management Inc. CT now owns 2,825,902 shares of the medical instruments supplier's stock valued at $96,731,000 after purchasing an additional 341,321 shares in the last quarter. 90.19% of the stock is currently owned by hedge funds and other 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.

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