Analysts Issue Opposite Views on Baker Hughes, a GE company (BHGE)

Analysts at BofA/Merrill lifted target price for shares of Baker Hughes, a GE company (NYSE:BHGE) but repeated their Buy recommendation for the stock in their opinion released on December 03. The price target has been raised from $37 to $27. Guggenheim analysts bumped their recommendation on BHGE stock from Neutral to Buy in a separate flash note to investors on October 31. Analysts at Jefferies downgraded the stock to a Hold call from its previous Buy stance, in a research note that dated back to October 31.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Baker Hughes, a GE company (NYSE:BHGE)’s prospects. The earliest insider trade took place on 11/19/2018. General Electric Co parted with a total of 101 million shares of company at average share price of $22.47. The total for the sales was set at $2269.47 million. After this transaction, the Director, 10% Owner account balance stood at 498 million shares. The stock lost -4.45 percent since that insider sale. On 08/06/2018, Camilleri Kurt, VP/Controller/Chief Acctg Off, sold 2.51 thousand shares at a price per share of $34. This removed 85.44 thousand shares from the insider’s fortune and the stock saw a -36.85 percent retreat in value since the news became public. This transaction left 0 thousand shares in the VP/Controller/Chief Acctg Off account. On 08/06/2018, Chief Digital Officer Heilmann Matthias L performed a sale transaction worth $408 thousand. This sale at $34 each has eliminated 12 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -36.85 percent decrease since the transaction was reported. The insider now is left with 3.74 thousand shares remaining in the account. Borras Maria C, who performs the Pres & CEO, Oilfield Services job, sold 19.57 thousand shares for $723.54 thousand. The disposal occurred on 05/09/2018 was priced at $36.97 per share. The share price plunged -41.93 percent since the reporting date. Borras Maria C now left with a stake of 0 thousand BHGE stock worth $0 thousand after the insider selling.

Baker Hughes, a GE company (BHGE) is expected to jump by 70.84 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $43-month high price target. This represents a whopping 100.28 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $37, which represents a return potential of 72.33 percent when compared to the closing price of the stock of $21.47 on Thursday, December 06. The lowest price target for the stock is $27 — slightly more than 25.76 percent from BHGE’s current share price.

The shares are currently floating around the first support level of $21.11. Below this, the next support is placed in the zone of $20.75. Till the time, the BHGE stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 25.94 on daily chart, which may remain a cause for comfort. If the price breaks below $20.75 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $21.77 mark may result into a pull-back move towards $22.07 level.

BHGE shares dropped -0.67 points or -3.03 percent on Thursday to $21.47 with a heavy trade volume of 6.982 million shares. After opening the session at $21.63, the shares went as high as $21.71 and as low as $21.05, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $22.5 billion and now has 1.05 billion shares outstanding. Baker Hughes, a GE company (BHGE) stock has lost -20.04 percent of market value in 21 trading days.

BHGE stock has a trailing 3-year beta of 0.85, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.09 a share in the trailing twelve months. The stock’s value has fallen -32.14 percent year to date (YTD) against a decline of -30.31 percent in 12 month’s time. The company’s shares still trade -43.14 percent away from its 1-year high of $37.76 and -0.92 percent down from 52-week low of $21.67. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Baker Hughes, a GE company (BHGE) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry BHGE operates in has an average P/E of 12.25. Its P/E ratio went as low as 9.97X and as high as 15.59 over the 5-year span. Further, it is sporting a 1.01 on the Price-to-Sales ratio. Compare this with the industry average P/S of 19.65. 16.2 percent is the gross profit margin for Baker Hughes, a GE company and operating margin sits at 1 percent. Along with this, the net profit margin is 0.4 percent.

BHGE will be showing off its Q4 earnings on January 23. Analysts are forecasting revenue to climb 5.5 percent to $6.08B in the next fiscal quarter, while earnings are seen soaring by nearly 80 percent to $0.27 per share. History has shown that shares in Baker Hughes, a GE company have gone up on 5 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.19 per share, worse than the $0.2, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $5.67B, worse than the $5.86B analysts expected. Earnings are estimated to increase by 92.4 percent this year, 109.06 percent next year and continue to increase by 0 percent annually for the next 5 years.