On September 15, 2023, it was reported that AMF Tjanstepension AB had increased its stake in Baker Hughes (NASDAQ:BKR) by 47.3% during the second quarter of the year. This information was disclosed in the company’s most recent filing with the Securities & Exchange Commission. As a result of this transaction, the institutional investor now owns 412,915 shares of Baker Hughes’ stock, having purchased an additional 132,608 shares during the quarter. These holdings were valued at $13,061,000 as of the most recent SEC filing.
These developments come after Baker Hughes announced its quarterly earnings results on July 19th. The company reported earnings per share of $0.39 for the quarter, surpassing the consensus estimate of $0.33 by $0.06. With a net margin of 4.94% and a return on equity of 9.01%, Baker Hughes demonstrated promising financial performance. The firm also generated revenue amounting to $6.32 billion during this period, outperforming analysts’ expectations of $6.27 billion. This represents a positive growth rate for Baker Hughes compared to the same quarter last year when it earned $0.11 EPS and had a revenue increase of 25.1%.
Analysts have taken notice of these developments and have published several research reports on Baker Hughes (BKR). For instance, Susquehanna boosted their target price on BKR shares from $38.00 to $42.00 and rated the stock as “positive” in their report published on July 20th. Piper Sandler also increased their target price from $43.00 to $47.00 and gave BKR an “overweight” rating in their analysis made on Monday.
Furthermore, banking giant HSBC raised its target price on BKR shares from $40 to $43 and issued a “buy” rating in their report on July 21st. Morgan Stanley reaffirmed an “overweight” rating and set a $37.00 target price for BKR shares in their analysis published on the same day. Finally, TheStreet upgraded Baker Hughes from a “c+” rating to a “b-” rating in their July 18th report.
Overall, analysts have given Baker Hughes a positive outlook, with fifteen out of seventeen analysts issuing a buy recommendation. Bloomberg reports that the company has received an average rating of “Moderate Buy” with a consensus target price of $38.44.
These recent developments highlight AMF Tjanstepension AB’s increased stake in Baker Hughes as well as the favorable earnings results and optimistic ratings from various research reports. Investors will be keenly observing future performance indicators and market dynamics for Baker Hughes as the fiscal year progresses.
Baker Hughes Company
Updated on: 16/09/2023
5:00 PM (UTC)
Date:15 September, 2023
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Growing Confidence in Baker Hughes: Hedge Funds and Analysts Increase Stakes and Ratings
Baker Hughes, a leading global provider of oilfield services, has recently attracted the attention of several hedge funds and institutional investors. Hedge funds such as BlackRock and State Street Corp have increased their stakes in the company, purchasing additional shares in the last quarter.
BlackRock Inc. now owns 91,242,708 shares of Baker Hughes’ stock, with a value of $2,633,265,000. This represents a 2.7% increase in their stake. Similarly, State Street Corp has lifted its stake by 0.5%, now owning 67,473,141 shares worth $1,947,274,000.
JPMorgan Chase & Co. and Dodge & Cox have also increased their stakes in Baker Hughes by 1.2% and 9.9% respectively. FIL Ltd rounds up the list of hedge funds with an increased stake of 6.9%.
These investments indicate a growing confidence in the company’s prospects and underlying value.
Shares of BKR opened at $36.68 on Friday with a fifty-two week high of $37.58 and a low of $20.42, showing relative stability within this range over the past year.
With a market capitalization of $37.03 billion and a price-to-earnings ratio (PE) of 32.46, Baker Hughes presents itself as an attractive investment opportunity for those seeking exposure to the oilfield services industry.
Various research reports have been published on BKR lately with optimistic ratings from well-known investment firms such as Susquehanna and Piper Sandler who boosted their target prices to $42.00 and $47.00 respectively.
HSBC is another investment firm that holds positive sentiment towards the stock by giving it a “buy” rating and raising its target price to $43.00.
Morgan Stanley has reiterated an “overweight” rating on Baker Hughes shares with a target price of $37.00. TheStreet has even upgraded the stock from a “c+” to a “b-” rating.
These ratings reflect a consensus among analysts that Baker Hughes possesses strong growth potential and favorable market conditions.
Moreover, the company recently announced an increased quarterly dividend. Stockholders of record on August 8th received a $0.20 dividend, representing an annualized dividend of $0.80 and a yield of 2.18%. This is an improvement over the previous quarterly dividend of $0.19, indicating confidence in the company’s ability to generate sustainable cash flows.
In terms of recent insider trading, EVP Maria C. Borras sold 10,000 shares at an average price of $36.56, totaling $365,600 in transaction value. Meanwhile, CEO Lorenzo Simonelli sold 122,500 shares at an average price of $35.49, resulting in a transaction amount of $4,347,525.
These sales are part of ongoing activity within the company’s management team and do not necessarily indicate negative sentiments towards the stock or its performance.
Overall, Baker Hughes continues to attract attention from hedge funds and institutional investors who view it as a promising investment opportunity within the oilfield services sector.
With positive research reports and increased dividends, coupled with steady growth potential and stable financials, Baker Hughes appears poised for future success.