On April 21, 2023, Keybank National Association OH made a strategic move by lowering its position in shares of Baker Hughes (NASDAQ:BKR) by 22.1%. This sell-off comes after an influx in bullish sentiments towards the Texas-based oilfield service company. According to the most recent disclosure with the SEC, KeyBank National Association OH now owns 15,037 shares of BKR stock after selling off 4,277 shares during the quarter which makes it a significant decrease from their previous holdings. The firm’s holdings in the oil industry pioneer were worth $444,000 as of its most recent SEC filing.
Keybank National Association OH is not alone in concluding that Baker Hughes has been performing relatively well in recent times. A number of research reports have been conducted on the company and all point towards a positive future. Analysts have gone on record to say that BKR is offering investors an opportunity for safe investment amid an increasingly volatile global market.
A research note initiated by Benchmark on January 19th provided a new perspective on BKR stocks with issuance of “buy” rating together with a target price of $36.00 per share. HSBC also raised their target price on January 30th from $33.30 to $39.00 indicating continued confidence in Baker Hughes as a sound investment option.
Evercore ISI joined in praising BKR by raising their target price from $37.00 to $38.00 while giving the company an “Outperform” rating while Morgan Stanley raised its own target price from $32.00 to $35.00 and gave the company an “Overweight” rating.
Previously neutral rating UBS Group also got into recommending BKR as they initiated coverage on shares of Baker Hughes issuing a neutral status and providing a target price of $31.
Overall, two equities research analysts have rated the stock as “HOLD,” but an overwhelming sixteen have assigned a “BUY” rating to Baker Hughes. According to Bloomberg, the company now holds an average rating of “Moderate Buy,” and a consensus price target of $35.58.
BKR stock opened at $30.09 on Friday last week, and the firm has a market cap of $30.43 billion. With a P/E ratio of -50.15, Baker Hughes is becoming a preferred choice for investors looking for safe investments amid an increasingly volatile global economic environment.
The company has maintained its position as a sound investment opportunity owing to factors such as its debt-to-equity ratio (0.41), current ratio (1.32), quick ratio (0.90), 1-year low ($20.42) and 1-year high ($38.65). Its fifty-day moving average stands at $29.61 while the two-hundred-day moving average is at $28.98.
In light of these developments, Baker Hughes looks like a good investment option for those looking for stability amid increasing volatility in the world markets.
Hedge Funds and Institutional Investors Increasing Ownership in Baker Hughes Despite Insider Trading Activity and Negative Net Margins
Baker Hughes (NASDAQ:BKR), an industry leader in oilfield services and equipment, has recently seen a notable increase in its ownership by hedge funds and institutional investors. In the first quarter of 2023, Covestor Ltd increased its stake in the company by over 100%, owning 1,349 shares worth $49,000 after purchasing an additional 690 shares. Harel Insurance Investments & Financial Services Ltd also acquired a new position in Baker Hughes worth approximately $48,000 during the fourth quarter of 2022.
Joining them are Private Trust Co. NA, which purchased over $52,000 worth of the company’s shares during the second quarter of last year; Miller Wealth Advisors LLC increased their stake by 100%, now owning 2,050 shares after acquiring an additional 1,025 in Q4; Finally Ameliora Wealth Management Ltd bought $47,000 worth of the stock during Q3. Altogether, hedge funds and institutional investors own roughly 97.40% of Baker Hughes’ stock.
Additionally, insider trading data reveals that Executive Vice President Maria C. Borras sold almost ten thousand shares at an average price of $30.93 each on January 31st this year for a total transaction value of over $303k. Borras retains indirect ownership of 59,463 shares valued at around $1.8 million following her sale.
Still, analysts have issued bullish ratings on BKR with UBS Group assigning it a “neutral” rating while Benchmark begins coverage with a “buy” rating and a target price of $36.00/share.
Recently announced quarterly earnings for Baker Hughes reveal outstanding results relative to shareholder estimates – $0.28 EPS beating consensus estimates of $0.26 EPS thanks to record-breaking revenue figures ($5.72B recorded versus projected revenues totalling only $5.52B). It is worth noting that for this quarter, the company had negative net margins of 2.85% despite a superior level of revenue growth compared to last year’s figures.
That said, Baker Hughes shareholders may rejoice at the fact that a quarterly dividend was paid out on February 17th valued at $0.19c/share with an impressive annualized dividend yield of 2.53%. While Baker Hughes has a payout ratio of -126.67%, the strong financials and positive outlooks for the company suggest there is still plenty of room for growth in value to shareholders moving forward.