Helmerich & Payne (NYSE:HP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Monday.
According to Zacks, “With crude prices oscillating between $45 and $50 a barrel for most of 2017 – down 55% from mid-2014 levels – the top energy companies cut spending (particularly on the costly drilling projects) on the back of lower profit margins. This, in turn, meant less work for the beleaguered drillers (like Helmerich & Payne) as exploration for new oil and gas projects almost came to a standstill. Moreover, with large, multinational energy firms looking to reign in their skyrocketing capital expenses, the drilling space witnessed intense competition, as multiple firms chased a single contract. This excess capacity, in turn, led to significantly lower utilization/dayrates. As such we do not see any near-term improvement for the likes of Helmerich & Payne. In fact, the stock is a risky bet that is best avoided at the moment.”
Several other equities analysts have also commented on HP. B. Riley reaffirmed a “neutral” rating on shares of Helmerich & Payne in a research report on Wednesday, November 1st. UBS Group lowered shares of Helmerich & Payne from a “buy” rating to a “hold” rating and set a $70.00 price objective for the company. in a research report on Friday, January 12th. Stephens began coverage on shares of Helmerich & Payne in a research report on Tuesday, January 9th. They issued an “equal weight” rating and a $67.00 price objective for the company. SunTrust Banks reaffirmed a “sell” rating and issued a $37.00 price objective (down from $66.00) on shares of Helmerich & Payne in a research report on Tuesday, October 3rd. Finally, Cowen set a $50.00 price objective on shares of Helmerich & Payne and gave the company a “hold” rating in a research report on Wednesday, October 18th. Eight equities research analysts have rated the stock with a sell rating, sixteen have given a hold rating and four have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and a consensus target price of $55.04.
Helmerich & Payne (NYSE:HP) last announced its quarterly earnings data on Thursday, November 16th. The oil and gas company reported ($0.14) EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.19) by $0.05. The firm had revenue of $532.30 million during the quarter, compared to analyst estimates of $493.78 million. Helmerich & Payne had a negative net margin of 7.16% and a negative return on equity of 2.96%. Helmerich & Payne’s revenue was up 60.5% on a year-over-year basis. During the same period last year, the firm posted ($0.33) EPS. analysts anticipate that Helmerich & Payne will post -0.38 EPS for the current year.
In other news, Director Chapman Paula Marshall sold 2,555 shares of the firm’s stock in a transaction that occurred on Friday, December 15th. The shares were sold at an average price of $57.80, for a total transaction of $147,679.00. Following the sale, the director now owns 12,525 shares of the company’s stock, valued at approximately $723,945. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 4.23% of the stock is owned by company insiders.
A number of institutional investors have recently added to or reduced their stakes in the stock. State of Alaska Department of Revenue grew its stake in Helmerich & Payne by 32.5% in the 4th quarter. State of Alaska Department of Revenue now owns 17,530 shares of the oil and gas company’s stock valued at $1,132,000 after acquiring an additional 4,300 shares during the period. McCollum Christoferson Group LLC acquired a new stake in Helmerich & Payne in the 4th quarter valued at $209,000. Fox Run Management L.L.C. acquired a new stake in Helmerich & Payne in the 4th quarter valued at $779,000. Alpha Windward LLC grew its stake in Helmerich & Payne by 3,400.7% in the 4th quarter. Alpha Windward LLC now owns 9,732 shares of the oil and gas company’s stock valued at $629,000 after acquiring an additional 9,454 shares during the period. Finally, Schwab Charles Investment Management Inc. grew its stake in Helmerich & Payne by 5.4% in the 4th quarter. Schwab Charles Investment Management Inc. now owns 738,019 shares of the oil and gas company’s stock valued at $47,706,000 after acquiring an additional 38,080 shares during the period.
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Helmerich & Payne Company Profile
Helmerich & Payne, Inc is engaged in contract drilling of oil and gas wells for others. The Company operates in the contract drilling industry. The Company’s contract drilling business consists of three segments: U.S. Land, Offshore and International Land. The Company is also engaged in the ownership, development and operation of commercial real estate and the research and development of rotary steerable technology.
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