Capital International Investors Acquires 956,808 Shares of Baker Hughes Company $BKR

Key Points

• Capital International Investors increased its Baker Hughes stake by 6.4% in the fourth quarter, buying 956,808 shares and bringing its total to 15.93 million shares worth about $725.6 million.
• Institutional ownership remains very high, with several other funds also adding to their positions; the article says 92.06% of Baker Hughes shares are owned by institutional investors.
• Baker Hughes reported quarterly EPS of $0.58, beating estimates, and it also pays a quarterly dividend of $0.23 per share for an annualized yield of 1.5%. Analysts currently rate the stock a Moderate Buy with an average price target of $69.14.

Capital International Investors raised its holdings in Baker Hughes Company (NASDAQ:BKR - Free Report) by 6.4% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 15,933,590 shares of the company's stock after acquiring an additional 956,808 shares during the quarter. Capital International Investors owned about 1.61% of Baker Hughes worth $725,616,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the business. Pinion Investment Advisors LLC acquired a new position in Baker Hughes in the 4th quarter valued at approximately $778,000. Nordea Investment Management AB increased its position in Baker Hughes by 12.7% in the 4th quarter. Nordea Investment Management AB now owns 2,755,743 shares of the company's stock valued at $125,813,000 after acquiring an additional 309,996 shares during the period. Legal & General Group Plc increased its position in Baker Hughes by 5.4% in the 3rd quarter. Legal & General Group Plc now owns 7,147,684 shares of the company's stock valued at $348,234,000 after acquiring an additional 367,728 shares during the period. Cibc World Market Inc. increased its position in Baker Hughes by 13.6% in the 3rd quarter. Cibc World Market Inc. now owns 829,816 shares of the company's stock valued at $40,429,000 after acquiring an additional 99,314 shares during the period. Finally, Johnson Investment Counsel Inc. increased its position in Baker Hughes by 10,225.3% in the 3rd quarter. Johnson Investment Counsel Inc. now owns 849,566 shares of the company's stock valued at $41,391,000 after acquiring an additional 841,338 shares during the period. 92.06% of the stock is owned by institutional investors.

Insider Activity at Baker Hughes

In related news, CAO Rebecca L. Charlton sold 5,088 shares of the company's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $64.22, for a total transaction of $326,751.36. Following the completion of the sale, the chief accounting officer directly owned 15,997 shares in the company, valued at $1,027,327.34. This represents a 24.13% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lorenzo Simonelli sold 272,594 shares of the company's stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $58.79, for a total transaction of $16,025,801.26. Following the sale, the chief executive officer owned 866,444 shares of the company's stock, valued at $50,938,242.76. This represents a 23.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 282,745 shares of company stock worth $16,651,472 in the last three months. 0.19% of the stock is owned by insiders.

Baker Hughes Stock Performance

NASDAQ BKR opened at $62.59 on Monday. The company's 50 day moving average is $63.91 and its 200-day moving average is $57.41. Baker Hughes Company has a 12-month low of $37.38 and a 12-month high of $70.41. The company has a quick ratio of 1.77, a current ratio of 2.13 and a debt-to-equity ratio of 0.79. The firm has a market cap of $62.09 billion, a P/E ratio of 20.00, a price-to-earnings-growth ratio of 2.23 and a beta of 0.93.

Baker Hughes (NASDAQ:BKR - Get Free Report) last issued its quarterly earnings data on Thursday, April 23rd. The company reported $0.58 EPS for the quarter, beating the consensus estimate of $0.49 by $0.09. Baker Hughes had a net margin of 11.17% and a return on equity of 14.17%. The company had revenue of $6.59 billion during the quarter, compared to analysts' expectations of $6.71 billion. During the same quarter in the previous year, the company earned $0.51 earnings per share. Baker Hughes's revenue for the quarter was up 2.5% on a year-over-year basis. Sell-side analysts predict that Baker Hughes Company will post 2.31 earnings per share for the current year.

Baker Hughes Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Tuesday, May 5th were issued a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date was Tuesday, May 5th. Baker Hughes's dividend payout ratio is currently 29.39%.

Analysts Set New Price Targets

BKR has been the subject of several recent research reports. Evercore restated an "outperform" rating and issued a $76.00 price target on shares of Baker Hughes in a research report on Monday, April 27th. Jefferies Financial Group reiterated a "buy" rating and set a $80.00 price objective on shares of Baker Hughes in a research report on Sunday, April 26th. Weiss Ratings reiterated a "buy (b)" rating on shares of Baker Hughes in a research report on Friday, April 24th. Royal Bank Of Canada increased their price objective on shares of Baker Hughes from $68.00 to $71.00 and gave the stock an "outperform" rating in a research report on Monday, April 27th. Finally, UBS Group increased their price objective on shares of Baker Hughes from $69.00 to $73.00 and gave the stock a "neutral" rating in a research report on Monday, April 27th. Eighteen investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $69.14.

Baker Hughes 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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