Baker Hughes Company (NASDAQ:BKR) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Baker Hughes has a “Moderate Buy” consensus rating from 21 brokerages, with 17 buy ratings and four holds. The average 12-month price target is approximately $70.67, above the reported share price of $62.41.
• The company exceeded quarterly expectations, reporting $0.64 in earnings per share versus the $0.51 consensus estimate and $6.74 billion in revenue versus $6.54 billion expected. Revenue increased 2.4% year over year.
• Insiders sold approximately $22.4 million of stock over the past 90 days, while institutional investors own 92.06% of the company. Baker Hughes also maintains a quarterly dividend of $0.23 per share, equivalent to a 1.5% yield.

Baker Hughes Company (NASDAQ:BKR - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the twenty-one brokerages that are covering the firm, Marketbeat Ratings reports. Four equities research analysts have rated the stock with a hold recommendation and seventeen have given a buy recommendation to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $70.6667.

Several equities research analysts have issued reports on BKR shares. Morgan Stanley began coverage on Baker Hughes in a report on Friday, August 7th. They set an "overweight" rating and a $70.00 price target for the company. Wolfe Research assumed coverage on shares of Baker Hughes in a research report on Wednesday, July 8th. They issued an "outperform" rating and a $70.00 price objective on the stock. TD Cowen raised their target price on shares of Baker Hughes from $77.00 to $78.00 and gave the stock a "buy" rating in a research note on Tuesday, July 28th. Stifel Nicolaus upped their price target on shares of Baker Hughes from $74.00 to $75.00 and gave the company a "buy" rating in a research note on Tuesday, July 28th. Finally, Piper Sandler upped their price target on shares of Baker Hughes from $71.00 to $73.00 and gave the company an "overweight" rating in a research note on Tuesday, July 28th.

Insider Activity at Baker Hughes

In other news, CEO Lorenzo Simonelli sold 181,411 shares of the stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $58.43, for a total transaction of $10,599,844.73. Following the transaction, the chief executive officer owned 703,444 shares in the company, valued at approximately $41,102,232.92. This trade represents a 20.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Rebecca L. Charlton sold 5,088 shares of Baker Hughes stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $64.22, for a total value of $326,751.36. Following the sale, the chief accounting officer directly owned 15,997 shares of the company's stock, valued at approximately $1,027,327.34. The trade was a 24.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 367,910 shares of company stock worth $22,420,797 in the last ninety days. 0.19% of the stock is owned by company insiders.

Institutional Investors Weigh In On Baker Hughes

A number of institutional investors have recently modified their holdings of BKR. Bleakley Financial Group LLC increased its position in Baker Hughes by 0.6% during the first quarter. Bleakley Financial Group LLC now owns 25,485 shares of the company's stock worth $1,556,000 after acquiring an additional 163 shares during the period. Resolute Wealth Strategies LLC boosted its holdings in Baker Hughes by 2.7% in the 1st quarter. Resolute Wealth Strategies LLC now owns 6,597 shares of the company's stock valued at $403,000 after purchasing an additional 172 shares during the period. Deseret Mutual Benefit Administrators grew its position in shares of Baker Hughes by 10.5% during the 4th quarter. Deseret Mutual Benefit Administrators now owns 1,884 shares of the company's stock worth $86,000 after purchasing an additional 179 shares in the last quarter. 3Chopt Investment Partners LLC grew its position in shares of Baker Hughes by 0.5% during the 4th quarter. 3Chopt Investment Partners LLC now owns 42,679 shares of the company's stock worth $1,944,000 after purchasing an additional 203 shares in the last quarter. Finally, Evolve Private Wealth LLC increased its holdings in shares of Baker Hughes by 2.4% during the first quarter. Evolve Private Wealth LLC now owns 8,663 shares of the company's stock worth $529,000 after purchasing an additional 203 shares during the period. Institutional investors own 92.06% of the company's stock.

Baker Hughes Price Performance

Shares of NASDAQ BKR opened at $62.41 on Friday. The company has a quick ratio of 1.76, a current ratio of 2.09 and a debt-to-equity ratio of 0.77. The business's 50 day moving average price is $59.26 and its two-hundred day moving average price is $61.45. The company has a market cap of $61.95 billion, a PE ratio of 20.13, a price-to-earnings-growth ratio of 1.93 and a beta of 0.97. Baker Hughes has a twelve month low of $43.92 and a twelve month high of $70.41.

Baker Hughes (NASDAQ:BKR - Get Free Report) last released its quarterly earnings data on Sunday, July 26th. The company reported $0.64 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.51 by $0.13. The company had revenue of $6.74 billion during the quarter, compared to analysts' expectations of $6.54 billion. Baker Hughes had a return on equity of 13.85% and a net margin of 11.17%.The business's revenue was up 2.4% on a year-over-year basis. During the same period last year, the firm posted $0.63 earnings per share. On average, analysts predict that Baker Hughes will post 2.51 EPS for the current year.

Baker Hughes Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 17th. Stockholders of record on Friday, August 7th were issued a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date was Friday, August 7th. Baker Hughes's payout ratio is currently 29.68%.

Baker Hughes Company Profile

Baker Hughes is an energy technology company that provides a broad portfolio of products, services and digital solutions for the oil and gas and industrial markets. Its offerings span oilfield services and equipment — including drilling, evaluation, completion and production technologies — as well as turbomachinery, compressors and related process equipment used in midstream and downstream operations. The company also supplies aftermarket services, field support and integrated solutions designed to improve asset performance and uptime across the energy value chain.

The firm's roots trace back to the merger of Baker International and Hughes Tool Company, and more recently it combined with GE's oil and gas business in 2017 to form Baker Hughes, a GE company (BHGE); subsequent changes in ownership restored Baker Hughes as an independent publicly traded company.

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