Baker Hughes Company (NASDAQ: BKR) stock fell -2.24% on Wednesday to $28.83 against a previous-day closing price of $29.49. With 6.65 million shares changed hands, the volume of the stock remained lighter than its average volume of 9.17 million shares. During the session, the Oil & Gas Equipment & Services company that operates in wider Energy sector, reached to the highest price of $29.37 whereas the lowest price it dropped to was $28.43. The 52-week range on BKR shows that it touched its highest point at $39.78 and its lowest point at $20.42 during that stretch. It currently has a 1-year price target of $33.10. With its current market cap of 29.77 billion, BKR has annualized dividend of $0.76 while the current yield stands at 2.64%. Beta for the stock currently stands at 1.53.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BKR was down-trending over the past week, with a drop of -4.63%, but this was up by 10.46% over a month. Three-month performance surged to 8.18% while six-month performance fell -19.29%. The stock gained 21.34% in the past year, while it has gained 19.83% so far this year. A look at the trailing 12-month EPS for BKR yields -0.45 with Next year EPS estimates of 1.66. For the next quarter, that number is 0.39. This implies an EPS growth rate of 98.20% for this year and 80.00% for next year. EPS is expected to grow by 49.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 46.90%.
Float and Shares Shorts:
At present, 1.01 billion BKR shares are outstanding with a float of 999.98 million shares on hand for trading. On Oct 13, 2022, short shares totaled 40.58 million, which was 4.05% higher than short shares on Sep 14, 2022. In addition to Mr. Lorenzo Simonelli as the firm’s Chairman, Pres & CEO, Mr. Brian Worrell serves as its Chief Financial Officer.
Through their ownership of 100.53% of BKR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 73.91% of BKR, in contrast to 7.82% held by mutual funds. Shares owned by individuals account for 26.42%. As the largest shareholder in BKR with 12.38% of the stake, Capital Research & Management Co holds 124,023,259 shares worth 124,023,259. A second-largest stockholder of BKR, The Vanguard Group, Inc., holds 115,415,124 shares, controlling over 11.53% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in BKR, holding 113,204,693 shares or 11.30% stake. With a 5.51% stake in BKR, the American Funds Investment Company is the largest stakeholder. A total of 55,156,569 shares are owned by the mutual fund manager. The Washington Mutual Investors Fund, which owns about 4.69% of BKR stock, is the second-largest Mutual Fund holder. It holds 46,989,120 shares valued at 1.3 billion. Vanguard Total Stock Market Index holds 3.03% of the stake in BKR, owning 30,387,162 shares worth 840.51 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BKR since 26 analysts follow the stock currently. There are 17 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BKR analysts setting a high price target of $38.00 and a low target of $29.00, the average target price over the next 12 months is $33.29. Based on these targets, BKR could surge 31.81% to reach the target high and rise by 0.59% to reach the target low. Reaching the average price target will result in a growth of 15.47% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BKR will report FY 2022 earnings on 01/23/2023. Analysts have provided yearly estimates in a range of $0.97 being high and $0.85 being low. For BKR, this leads to a yearly average estimate of $0.92. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Baker Hughes Company surprised analysts by $0.02 when it reported $0.26 EPS against a consensus estimate of $0.24. The surprise factor in the prior quarter was -$0.10. Based on analyst estimates, the high estimate for the next quarter is $0.44 and the low estimate is $0.32. The average estimate for the next quarter is thus $0.39.
Dividends & Yield:
In terms of dividends, BKR has a current ratio of $0.76, which is $0.76 over the trailing 12-months, while a dividend of $0.69 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and BKR currently yields $2.51. In the past year, BKR’s dividend yield has been $2.51, but when looking at the stock over the past five years, its yield has been $3.07. Accordingly, BKR has a current buyback yield of $3.62. This was $3.62 for the TTM.
Summary of Insider Activity:
Insiders traded BKR stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 48 while that of sell transactions has risen to 40 over the past year. The total number of shares bought during that period was 77,218,828 while 122,978,238 shares were sold.