Wall Street Zen Downgrades Baxter International (NYSE:BAX) to Hold

Key Points

• Wall Street Zen downgraded Baxter International from a "buy" to a "hold" rating, reflecting a shift in sentiment among analysts regarding the company’s stock.
• Multiple equity analysts, including Citigroup and Wells Fargo, have also reduced their target prices on Baxter International, suggesting a cautious outlook on the stock's performance.
• Baxter International reported a missed earnings estimate for the last quarter, with EPS of $0.59, falling short of the expected $0.60, along with a revenue of $2.81 billion, slightly under analysts' expectations.

Baxter International (NYSE:BAX - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

A number of other equities analysts also recently weighed in on the company. Citigroup cut their target price on Baxter International from $34.00 to $32.00 and set a "neutral" rating on the stock in a research note on Wednesday, July 9th. Evercore ISI cut their price objective on Baxter International from $44.00 to $42.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 8th. Morgan Stanley reduced their price objective on Baxter International from $28.00 to $27.00 and set an "underweight" rating for the company in a research note on Tuesday, July 15th. The Goldman Sachs Group reiterated a "neutral" rating and set a $25.00 target price on shares of Baxter International in a research note on Friday. Finally, Wells Fargo & Company reduced their price target on shares of Baxter International from $33.00 to $24.00 and set an "equal weight" rating for the company in a research report on Friday. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and four have issued a buy rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $33.13.

Baxter International Trading Up 1.0%

NYSE BAX opened at $21.97 on Friday. The company has a current ratio of 2.02, a quick ratio of 1.40 and a debt-to-equity ratio of 1.33. The business has a fifty day simple moving average of $29.52 and a 200 day simple moving average of $31.03. Baxter International has a 12 month low of $21.33 and a 12 month high of $40.49. The firm has a market capitalization of $11.27 billion, a P/E ratio of -73.23, a PEG ratio of 0.64 and a beta of 0.59.

Baxter International (NYSE:BAX - Get Free Report) last announced its earnings results on Thursday, July 31st. The medical instruments supplier reported $0.59 EPS for the quarter, missing the consensus estimate of $0.60 by ($0.01). Baxter International had a negative net margin of 1.42% and a positive return on equity of 16.93%. The firm had revenue of $2.81 billion during the quarter, compared to analysts' expectations of $2.82 billion. During the same quarter in the prior year, the company earned $0.68 EPS. The business's revenue for the quarter was up 4.3% on a year-over-year basis. On average, analysts predict that Baxter International will post 2.48 EPS for the current fiscal year.

Hedge Funds Weigh In On Baxter International

A number of institutional investors and hedge funds have recently added to or reduced their stakes in BAX. Geode Capital Management LLC raised its position in shares of Baxter International by 2.4% in the fourth quarter. Geode Capital Management LLC now owns 12,446,939 shares of the medical instruments supplier's stock valued at $362,006,000 after purchasing an additional 290,279 shares during the period. Oarsman Capital Inc. purchased a new position in Baxter International in the 4th quarter valued at approximately $157,000. Russell Investments Group Ltd. raised its holdings in Baxter International by 40.4% during the 4th quarter. Russell Investments Group Ltd. now owns 1,745,709 shares of the medical instruments supplier's stock valued at $50,904,000 after acquiring an additional 502,370 shares during the period. Jaffetilchin Investment Partners LLC lifted its position in shares of Baxter International by 115,259.6% during the fourth quarter. Jaffetilchin Investment Partners LLC now owns 65,755 shares of the medical instruments supplier's stock worth $1,917,000 after acquiring an additional 65,698 shares in the last quarter. Finally, Sterling Capital Management LLC lifted its position in shares of Baxter International by 55.2% during the fourth quarter. Sterling Capital Management LLC now owns 30,264 shares of the medical instruments supplier's stock worth $882,000 after acquiring an additional 10,768 shares in the last quarter. Institutional investors own 90.19% of the company's stock.

Baxter International Company Profile

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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