Baxter International Inc. (BAX) Downgraded to “Hold” at Zacks Investment Research
Baxter International Inc. (NYSE:BAX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.
According to Zacks, “We believe Baxter is gaining prominence with a series of strategic developments that include the recent launch of NUMETA G13E in Europe for vulnerable preterm newborns, the strategic tie-up with Satellite Healthcare and the recognition of its Sigma spectrum infusion system as a highly efficient infusion pump in drug library compliance (analysis by KLAS research firm). However, intense competition in the medical products segment and unimpressive hospital spending environment are major concerns. Moreover, lower cyclophosphamide sales poise threats to the Integrated Pharmacy Solutions franchise business of Baxter, as sales in this segment is expected to drop by low-single digits for the full-year 2016.”
Other equities research analysts have also recently issued reports about the stock. RBC Capital Markets reissued a “hold” rating and issued a $50.00 price objective (up from $47.00) on shares of Baxter International in a research note on Wednesday, July 27th. Royal Bank Of Canada upped their target price on shares of Baxter International from $47.00 to $50.00 and gave the company a “sector perform” rating in a report on Wednesday, July 27th. Argus restated a “hold” rating on shares of Baxter International in a report on Monday, August 15th. JPMorgan Chase & Co. upped their target price on shares of Baxter International from $45.00 to $48.00 and gave the company a “neutral” rating in a report on Wednesday, July 27th. Finally, Goldman Sachs Group Inc. restated a “buy” rating on shares of Baxter International in a report on Wednesday, July 6th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and six have issued a buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus price target of $48.17.
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Shares of Baxter International (NYSE:BAX) traded up 0.06% on Monday, hitting $47.48. 747,410 shares of the company were exchanged. The firm has a market cap of $25.82 billion, a P/E ratio of 5.45 and a beta of 0.70. The company has a 50-day moving average price of $47.05 and a 200 day moving average price of $45.57. Baxter International has a 52-week low of $33.78 and a 52-week high of $49.49.
Baxter International (NYSE:BAX) last issued its quarterly earnings data on Tuesday, July 26th. The company reported $0.46 EPS for the quarter, beating the Zacks’ consensus estimate of $0.40 by $0.06. The firm had revenue of $2.60 billion for the quarter, compared to analysts’ expectations of $2.51 billion. Baxter International had a net margin of 47.74% and a return on equity of 10.70%. The firm’s revenue was up 4.4% on a year-over-year basis. During the same period in the prior year, the company earned $1.00 EPS. Analysts predict that Baxter International will post $1.73 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Monday, October 3rd. Investors of record on Friday, September 2nd were issued a $0.13 dividend. The ex-dividend date of this dividend was Wednesday, August 31st. This represents a $0.52 annualized dividend and a yield of 1.10%. Baxter International’s payout ratio is 5.99%.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Stock Yards Bank & Trust Co. raised its position in Baxter International by 8.7% in the third quarter. Stock Yards Bank & Trust Co. now owns 4,991 shares of the company’s stock valued at $238,000 after buying an additional 400 shares during the last quarter. Orrstown Financial Services Inc. purchased a new stake in shares of Baxter International during the third quarter valued at about $531,000. Oregon Public Employees Retirement Fund increased its stake in shares of Baxter International by 2.7% in the third quarter. Oregon Public Employees Retirement Fund now owns 136,553 shares of the company’s stock valued at $6,500,000 after buying an additional 3,640 shares during the period. Stillwater Investment Management LLC increased its stake in shares of Baxter International by 3.0% in the third quarter. Stillwater Investment Management LLC now owns 19,967 shares of the company’s stock valued at $950,000 after buying an additional 588 shares during the period. Finally, West Oak Capital LLC increased its stake in shares of Baxter International by 30.1% in the third quarter. West Oak Capital LLC now owns 6,049 shares of the company’s stock valued at $288,000 after buying an additional 1,400 shares during the period. Hedge funds and other institutional investors own 84.38% of the company’s stock.
About Baxter International
Baxter International Inc, through its subsidiaries, provides a portfolio of essential renal and hospital products, including home, acute and in-center dialysis; sterile intravenous (IV) solutions; infusion systems and devices; parenteral nutrition; biosurgery products and anesthetics, and pharmacy automation, software and services.
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