Zacks Investment Research Lowers Baxter International Inc. (BAX) to Hold
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.”
A number of other equities research analysts have also recently issued reports on the company. Wells Fargo & Co. assumed coverage on Baxter International in a research report on Thursday. They set an “outperform” rating for the company. Barclays PLC assumed coverage on Baxter International in a research report on Thursday, September 15th. They set an “overweight” rating and a $52.00 target price for the company. Argus reaffirmed a “hold” rating on shares of Baxter International in a research report on Monday, August 15th. JPMorgan Chase & Co. upped their target price on Baxter International from $45.00 to $48.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 27th. Finally, RBC Capital Markets reaffirmed a “hold” rating and set a $50.00 target price (up previously from $47.00) on shares of Baxter International in a research report on Wednesday, July 27th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and six have issued a buy rating to the company. Baxter International has a consensus rating of “Hold” and an average price target of $48.17.
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Baxter International (NYSE:BAX) traded down 0.17% during mid-day trading on Monday, reaching $47.37. 2,460,434 shares of the company’s stock traded hands. The firm’s 50-day moving average price is $47.05 and its 200 day moving average price is $45.57. The stock has a market capitalization of $25.76 billion, a PE ratio of 5.44 and a beta of 0.70. Baxter International has a 12 month low of $33.78 and a 12 month high of $49.49.
Baxter International (NYSE:BAX) last announced its earnings results on Tuesday, July 26th. The company reported $0.46 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $0.06. The firm earned $2.60 billion during the quarter, compared to analysts’ expectations of $2.51 billion. Baxter International had a return on equity of 10.70% and a net margin of 47.74%. The company’s revenue was up 4.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.00 earnings per share. Equities research analysts predict that Baxter International will post $1.73 EPS for the current year.
The firm also recently announced a quarterly dividend, which was paid on Monday, October 3rd. Stockholders of record on Friday, September 2nd were paid a $0.13 dividend. The ex-dividend date of this dividend was Wednesday, August 31st. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.10%. Baxter International’s dividend payout ratio (DPR) is presently 5.99%.
Several hedge funds have recently made changes to their positions in the stock. Exxonmobil Investment Management Inc. TX raised its stake in shares of Baxter International by 7.2% in the second quarter. Exxonmobil Investment Management Inc. TX now owns 142,953 shares of the company’s stock worth $6,464,000 after buying an additional 9,560 shares during the period. Baxter Bros Inc. acquired a new stake in shares of Baxter International during the second quarter worth $229,000. Stock Yards Bank & Trust Co. acquired a new stake in shares of Baxter International during the second quarter worth $208,000. BNP Paribas Arbitrage SA raised its stake in shares of Baxter International by 753.5% in the second quarter. BNP Paribas Arbitrage SA now owns 2,281,030 shares of the company’s stock worth $103,148,000 after buying an additional 2,013,786 shares during the period. Finally, Lebenthal Asset Management LLC acquired a new stake in shares of Baxter International during the first quarter worth $1,100,000. 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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