It is Poised to be a Bull Market for Baker Hughes Company (BKR)

Baker Hughes Company (NASDAQ: BKR) stock jumped 1.13% on Wednesday to $28.72 against a previous-day closing price of $28.40. With 5.06 million shares changed hands, the volume of the stock remained lighter than its average volume of 6.9 million shares. During the session, the Oil & Gas Equipment & Services company that operates in wider Energy sector, reached to the highest price of $29.05 whereas the lowest price it dropped to was $28.24. The 52-week range on BKR shows that it touched its highest point at $38.65 and its lowest point at $20.42 during that stretch. It currently has a 1-year price target of $36.91. With its current market cap of 29.09 billion, BKR has annualized dividend of $0.76 while the current yield stands at 2.65%. Beta for the stock currently stands at 1.47.

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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 up-trending over the past week, with a rise of 4.51%, but this was down by -1.95% over a month. The stock lost -19.57% in the past year, while it has lost -2.74% so far this year. A look at the trailing 12-month EPS for BKR yields -0.11 with Next year EPS estimates of 2.05. For the next quarter, that number is 0.34. This implies an EPS growth rate of -129.10% for this year and 34.89% for next year. EPS is expected to grow by 43.80% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -4.90%.

Float and Shares Shorts:

At present, 1.01 billion BKR shares are outstanding with a float of 1.00 billion shares on hand for trading. On Apr 27, 2023, short shares totaled 14.18 million, which was 1.40% higher than short shares on Mar 30, 2023. In addition to Mr. Lorenzo Simonelli as the firm’s Chairman, Pres & CEO, Ms. Nancy K. Buese CPA serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 98.42% of BKR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 7.76% of BKR, in contrast to 69.23% held by mutual funds. Shares owned by individuals account for 27.31%. As the largest shareholder in BKR with 11.63% of the stake, The Vanguard Group, Inc. holds 117,711,446 shares worth 117,711,446. A second-largest stockholder of BKR, Capital Research & Management Co, holds 99,952,330 shares, controlling over 9.87% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in BKR, holding 95,418,443 shares or 9.43% stake. With a 4.94% stake in BKR, the American Funds Investment Company is the largest stakeholder. A total of 50,037,340 shares are owned by the mutual fund manager. The Washington Mutual Investors Fund, which owns about 3.45% of BKR stock, is the second-largest Mutual Fund holder. It holds 34,875,008 shares valued at 1.02 billion. Vanguard Total Stock Market ETF holds 3.10% of the stake in BKR, owning 31,428,730 shares worth 918.98 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, BKR reported revenue of $5.05B and operating income of $346.00M. The EBITDA in the recently reported quarter was $51.00M and diluted EPS was -$0.84.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BKR since 0 analysts follow the stock currently. 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 $43.00 and a low target of $27.00, the average target price over the next 12 months is $36.83. Based on these targets, BKR could surge 49.72% to reach the target high and fall by -5.99% to reach the target low. Reaching the average price target will result in a growth of 28.24% 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.

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 $0.72 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 $2.58. In the past year, BKR’s dividend yield has been $2.58, but when looking at the stock over the past five years, its yield has been $3.17. Accordingly, BKR has a current buyback yield of $2.04. This was $2.04 for the TTM.

Summary of Insider Activity:

Insiders traded BKR stock several times over the past three months with 5 Buys and 6 Sells. In these transactions, 291,022 shares were bought while 126,890 shares were sold. The number of buy transactions has increased to 31 while that of sell transactions has risen to 28 over the past year. The total number of shares bought during that period was 772,745 while 687,354 shares were sold.

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