As of the second quarter, &DnB Asset Management AS has made a significant reduction in its stake in Halliburton (NYSE:HAL), according to its recent filing with the Securities and Exchange Commission (SEC). The institutional investor has sold 105,179 shares, which represents a decrease of 38.8%. &DnB Asset Management AS now holds a total of 165,617 shares of the oilfield services company’s stock. At the end of the reporting period, these holdings were valued at $5,464,000.
Halliburton released its quarterly earnings results on July 19th. The company reported earnings per share (EPS) of $0.77 for the quarter, surpassing analysts’ consensus estimates by $0.02. With a net margin of 10.98% and a return on equity of 31.01%, Halliburton’s financial performance was notable during this period. The company generated $5.80 billion in revenue for the quarter, slightly lower than the consensus estimate of $5.85 billion. However, it is important to note that Halliburton’s revenue experienced a year-over-year increase of 14.3%. In comparison, during the same quarter last year, Halliburton earned an EPS of $0.49.
Sell-side analysts are optimistic about Halliburton’s future performance and forecast that it will achieve earnings per share of 3.04 for the current fiscal year.
In conclusion, &DnB Asset Management AS has significantly reduced its stake in Halliburton during the second quarter. Despite this reduction, Halliburton remains confident in its financial performance as evidenced by its impressive quarterly earnings results and projected earnings for the current fiscal year.
Halliburton Company
HAL
Strong Buy
Updated on: 27/09/2023
Financial Health
Very Healthy
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
Changing Institutional Investor Landscape and Positive Outlook for Halliburton
Halliburton, an oilfield services company, has seen changes in the positions of several institutional investors and hedge funds. Toroso Investments LLC increased its holdings in Halliburton by 3.3% during the third quarter, adding an additional 334 shares to its portfolio valued at $257,000. Birmingham Capital Management Co. Inc. AL also boosted its holdings in the company by 0.4% during the fourth quarter, acquiring 338 more shares worth $3,296,000. Meanwhile, West Oak Capital LLC saw a substantial increase of 21.2% in its Halliburton holdings during the first quarter, adding an additional 350 shares valued at $63,000.
Citizens Financial Group Inc RI and Harrell Investment Partners LLC also made small gains in their holdings of Halliburton during the first quarter. Citizens Financial Group now owns 34,039 shares worth $1,077,000 after buying an additional 354 shares. Harrell Investment Partners now holds 19,186 shares valued at $755,000 after acquiring an additional 358 shares.
It is interesting to note that these institutional investors currently own approximately 82.09% of Halliburton stock.
Moving on to the financials of the company itself, on Monday Halliburton stock opened at $42.11 with a market capitalization of $37.84 billion and a P/E ratio of 15.48—the earnings potential appears promising for investors who seek long-term growth opportunities.The P/E/G ratio stands at a modest rate of 0.70 while beta indicates high volatility with a value of 2.18—a factor that should be taken into consideration when analyzing potential risks associated with investing in this industry leader.
The firm’s fifty-day simple moving average is recorded as $39.19 while its two-hundred-day simple moving average stands at $34.58—clear signs of steady growth and potential profitability in the midterm.
Halliburton’s current ratio is 2.14, indicating strong liquidity, with a quick ratio of 1.53—the company appears to have adequate current assets to meet short-term obligations. Additionally, the debt-to-equity ratio is at a moderate level of 0.91—suggesting that Halliburton has successfully managed its debt exposure and maintained a healthy financial position.
In terms of dividends, the company recently announced that it will pay a quarterly dividend on Wednesday, September 27th to shareholders on record as of Wednesday, September 6th. This dividend amounts to $0.16 per share and reflects an annualized dividend yield of 1.52%. With a payout ratio currently at 23.53%, Halliburton shows its commitment to returning value to shareholders while maintaining fiscal prudence.
Financial analysts have also weighed in on Halliburton stock. UBS Group raised their target price from $49.00 to $52.00 and assigned a “buy” rating based on their analysis in August 2023. Susquehanna also expressed positivity towards Halliburton when they increased their price objective for the stock from $42.00 to $44.00 in July of the same year.
Furthermore, StockNews.com initiated coverage on Halliburton and gave it a “hold” rating last month—a cautious stance perhaps due to recent fluctuations in market conditions—it will be interesting to see how this plays out over time.Barclays, however, decreased their price objective in July from $58.00 to $49.00 though maintained an overall positive outlook towards the stock.
Morgan Stanley reaffirmed their “overweight” rating and assigned a price objective of $45—one that aligns with other optimistic forecasts—underscoring their confidence in continued growth for Halliburton.
Overall, Bloomberg.com reports an average rating of “Buy” for Halliburton with a consensus price target of $48.21. This further affirms the positive sentiment from industry experts who have analyzed the stock’s potential for growth and recommended a long position in this oilfield services company.
In conclusion, Halliburton has seen changes in its institutional investor landscape, with several funds increasing their holdings in the company. As for the stock itself, it opened at $42.11 and shows promising signs of stability and profitability, supported by strong financial indicators such as liquidity ratios and manageable debt levels. Dividend payments also showcase Halliburton’s commitment to its shareholders. Analysts’ ratings lean overwhelmingly towards a positive outlook, providing further validation for investors considering including Halliburton in their portfolios.
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