Baxter International Inc. (NYSE:BAX) has been given an average rating of “Hold” by the fourteen analysts currently covering the stock, according to a report from Bloomberg Ratings dated September 26, 2023. The rating breakdown reveals that one analyst has issued a sell rating on the stock, nine have given a hold rating, and four have provided a buy recommendation for the company. Furthermore, brokerages that have released reports on the stock within the past year suggest an average twelve-month price target of $51.07.
In terms of hedge fund activity, some notable changes have been made to positions in Baxter International. Geode Capital Management LLC increased its stake in shares of the medical instruments supplier by 18.5% during the second quarter. As a result, Geode Capital Management LLC now owns 10,629,326 shares of Baxter International’s stock valued at $482,991,000 after acquiring an additional 1,658,160 shares during this period.
Ameriprise Financial Inc., another hedge fund player, raised its stake in Baxter International shares by 19.8% in the first quarter. The firm now owns 5,212,694 shares with a value of $211,440,000 after purchasing an additional 860,805 shares.
Additionally, Amundi boosted its stake in Baxter International by 22.7% during the fourth quarter and now holds 3,944,914 shares valued at $179,257,000. Cooke & Bieler LP also lifted its position by 28.4%, currently holding 3,255,880 shares worth $132-058-000 after adding another 719615 shares.
Lastly Coho Partners Ltd., increased their shareholding by 1.6% owns 2 million plus shares of Baxter with market value around USD81 million.
It is worth noting that institutional investors and hedge funds control approximately 85.47% of the company’s stock.
Alongside these developments, Baxter International recently announced its quarterly dividend payment to be made on October 2nd, affecting stockholders of record as of September 1st. The dividend payout will amount to $0.29 per share, resulting in an annualized dividend of $1.16 and a dividend yield of 3.09%. It is worth noting that the ex-dividend date is listed as August 31st. Interestingly, the company’s dividend payout ratio (DPR) currently stands at -20.49%.
Given the average rating for Baxter International and the diverse positions adopted by hedge funds regarding its stock, investors are advised to conduct thorough research and analysis before making any investment decisions.
Baxter International Inc.
BAX
Strong Buy
Updated on: 03/12/2023
Financial Health
Very Healthy
Debt to equity ratio: Strong Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
Mixed Analyst Reports and Lack of Context Surrounding Baxter International’s Stock Performance
On September 26, 2023, several equities research analysts released reports on the stock performance of Baxter International. In one report, StockNews.com initiated coverage on the shares of Baxter International and assigned a “hold” rating to the stock. This suggests that the analysts are not particularly bullish or bearish on the company’s prospects.
Another report by Wells Fargo & Company lowered their target price for shares of Baxter International from $46.00 to $44.00 and provided an “equal weight” rating for the stock. It is not clear why they revised their target price downwards, as details regarding any potential concerns are not included in the text.
It should be noted that 888 reaffirmed an “assume” rating for shares of Baxter International in a previous report. However, it is important to recognize that without additional information, it is difficult to comprehend what exact assumptions are being made.
Alternatively, Stifel Nicolaus raised their target price for shares of Baxter International from $54.00 to $56.00 in a separate report. Unfortunately, again, there is no elaboration on the underlying rationale behind this optimistic adjustment.
Lastly, Barclays reduced their price objective for shares of Baxter International from $58.00 to $54.00 while maintaining an “overweight” rating on the stock. The text does not indicate what factors influenced Barclays’ decision to adjust their price objective downward.
As per recent trading activity, shares of BAX stock opened at $37.50 on Tuesday. The firm’s 50-day moving average price was reported at $42.49 while its 200-day moving average stood slightly higher at $42.79.
Furthermore, financial data highlights that Baxter International has a debt-to-equity ratio of 2.54 with both quick ratio and current ratio values standing at 0.92 and 1.42 respectively.
In terms of share performance over the last year, Baxter International experienced a low of $37.35 and a high of $58.23. This indicates significant volatility in the stock price during this period.
Notably, Baxter International currently holds a market capitalization of $18.99 billion with a negative price-to-earnings (P/E) ratio of -6.63 and P/E-to-growth (PEG) ratio of 2.67. These figures suggest that the stock might be undervalued or experiencing some unusual market conditions.
Lastly, Baxter International recently released its quarterly earnings data on Thursday, July 27th. The company reported earnings per share (EPS) of $0.55 for the quarter, falling short of the consensus estimate by ($0.04). It is disappointing to note that the company failed to meet analyst expectations.
Moreover, Baxter International boasted a positive return on equity (ROE) of 24.94% while also recording a negative net margin of 19%. Additionally, the company’s quarterly revenue stood at $3.71 billion, slightly below analyst estimates which projected it to be around $3.79 billion.
Considering all these factors, equities research analysts are predicting that Baxter International will post EPS of approximately 2.55 for the current year.
In summary, several equities research analysts have offered differing opinions on Baxter International’s stock performance and prospects without providing comprehensive explanations for their ratings or target price adjustments. Given the mixed signals and lack of context surrounding these reports, investors might find themselves perplexed when trying to make informed decisions regarding this particular stock.
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