Insider Selling: Baker Hughes (NASDAQ:BKR) CEO Sells $10,599,844.73 in Stock

Key Points

• Baker Hughes CEO Lorenzo Simonelli sold 181,411 shares on June 22 for about $10.6 million at an average price of $58.43. The sale was made under a pre-arranged Rule 10b5-1 trading plan, and it reduced his direct ownership by 20.5%.
• The stock fell 3.9% to $56.39 amid elevated trading volume. Baker Hughes has a market value of about $55.9 billion and is trading below its 50-day average, though near its 200-day average.
• Recent fundamentals and analyst sentiment remain mixed but generally positive: the company beat EPS expectations in its last quarter, paid a $0.23 dividend, and Wall Street’s consensus rating is Moderate Buy with an average price target of $69.14.

Baker Hughes Company (NASDAQ:BKR - Get Free Report) CEO Lorenzo Simonelli sold 181,411 shares of Baker Hughes stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $58.43, for a total value of $10,599,844.73. Following the completion of the transaction, the chief executive officer directly owned 703,444 shares of the company's stock, valued at approximately $41,102,232.92. This trade represents a 20.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Lorenzo Simonelli also recently made the following trade(s):

• On Friday, June 12th, Lorenzo Simonelli sold 181,411 shares of Baker Hughes stock. The stock was sold at an average price of $63.36, for a total transaction of $11,494,200.96.

Baker Hughes Stock Down 3.9%

NASDAQ:BKR traded down $2.29 during trading hours on Wednesday, reaching $56.39. The company had a trading volume of 12,629,332 shares, compared to its average volume of 9,131,863. 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 $55.94 billion, a price-to-earnings ratio of 18.01, a P/E/G ratio of 2.13 and a beta of 0.93. The business's 50-day simple moving average is $63.85 and its two-hundred day simple moving average is $58.43. Baker Hughes Company has a twelve month low of $37.46 and a twelve month high of $70.41.

Baker Hughes (NASDAQ:BKR - Get Free Report) last announced its quarterly earnings data on Thursday, April 23rd. The company reported $0.58 EPS for the quarter, beating analysts' consensus estimates of $0.49 by $0.09. Baker Hughes had a return on equity of 14.17% and a net margin of 11.17%.The firm had revenue of $6.59 billion during the quarter, compared to analysts' expectations of $6.71 billion. During the same quarter last year, the firm posted $0.51 earnings per share. The company's revenue for the quarter was up 2.5% compared to the same quarter last year. On average, equities analysts expect that Baker Hughes Company will post 2.28 earnings per share for the current year.

Baker Hughes Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Tuesday, May 5th were issued a $0.23 dividend. The ex-dividend date was Tuesday, May 5th. This represents a $0.92 annualized dividend and a dividend yield of 1.6%. Baker Hughes's dividend payout ratio is currently 29.39%.

Institutional Trading of Baker Hughes

Institutional investors have recently added to or reduced their stakes in the stock. EFG International AG purchased a new position in shares of Baker Hughes during the 4th quarter valued at about $26,000. Cullen Frost Bankers Inc. grew its position in Baker Hughes by 344.1% during the fourth quarter. Cullen Frost Bankers Inc. now owns 604 shares of the company's stock valued at $27,000 after acquiring an additional 468 shares during the last quarter. Quarry LP purchased a new position in shares of Baker Hughes during the fourth quarter worth approximately $31,000. MV Capital Management Inc. purchased a new position in shares of Baker Hughes during the fourth quarter worth approximately $34,000. Finally, Acumen Wealth Advisors LLC bought a new stake in shares of Baker Hughes in the 4th quarter worth approximately $35,000. Hedge funds and other institutional investors own 92.06% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. Zacks Research raised Baker Hughes from a "strong sell" rating to a "hold" rating in a research report on Monday, June 15th. Capital One Financial boosted their price objective on Baker Hughes from $66.00 to $71.00 and gave the company an "overweight" rating in a research note on Thursday, May 21st. Stifel Nicolaus upped their price objective on shares of Baker Hughes from $63.00 to $74.00 and gave the company a "buy" rating in a report on Monday, April 27th. JPMorgan Chase & Co. increased their target price on shares of Baker Hughes from $60.00 to $74.00 and gave the stock an "overweight" rating in a research report on Monday, April 27th. Finally, Wall Street Zen downgraded shares of Baker Hughes from a "buy" rating to a "hold" rating in a research note on Saturday, March 28th. Eighteen analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $69.14.

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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