Helmerich & Payne (HP) – Investment Analysts’ Weekly Ratings Updates

Several brokerages have updated their recommendations and price targets on shares of Helmerich & Payne (NYSE: HP) in the last few weeks:

  • 2/8/2018 – Helmerich & Payne was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “We are recalibrating our investment thesis on Helmerich & Payne from Buy to Hold. Higher drilling activity at its biggest segment – U.S. Land – helped HP come out with narrower-than-expected loss. The rally in crude prices over the past year have led to strengthening fundamentals and increasing level of rig activity. In particular, HP's U.S. land drilling business has been able to grow its utilization and dayrates amid pricing improvements. As it is, we believe the proprietary FlexRigs will continue to benefit from the shift to complex onshore plays that require highly intensive solutions. But with large, multinational energy firms looking to reign in their skyrocketing capital expenses, the drilling space is witnessing intense competition, as multiple firms chase a single contract. This will continue to impact the earnings adversely in the near-to medium term.”
  • 2/2/2018 – Helmerich & Payne was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $82.00 price target on the stock. According to Zacks, “Following Helmerich & Payne's solid Q1 results, we are recalibrating our investment thesis on the company from Sell to Hold. Higher drilling activity at its biggest segment – U.S. Land – helped HP come out with narrower-than-expected loss. The rally in crude prices over the past year have led to strengthening fundamentals and increasing level of rig activity. In particular, HP's U.S. land drilling business has been able to grow its utilization and dayrates amid pricing improvements. As it is, we believe the proprietary FlexRigs will continue to benefit from the shift to complex onshore plays that require highly intensive solutions. Consequently, we think Helmerich & Payne offers substantial upside potential from the current price levels and view it as an attractive investment.”
  • 2/1/2018 – Helmerich & Payne was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Higher drilling activity at its biggest segment – U.S. Land – helped Helmerich & Payne come out with narrower-than-expected loss. The rally in crude prices over the past year have led to strengthening fundamentals and increasing level of rig activity. In particular, HP's U.S. land drilling business has been able to grow its utilization and dayrates amid pricing improvements. As it is, we believe the proprietary FlexRigs will continue to benefit from the shift to complex onshore plays that require highly intensive solutions. But with large, multinational energy firms looking to reign in their skyrocketing capital expenses, the drilling space is witnessing intense competition, as multiple firms chase a single contract. This will continue to impact the earnings adversely in the near-to medium term.”
  • 2/1/2018 – Helmerich & Payne had its price target raised by analysts at Argus from $65.00 to $87.00. They now have a “buy” rating on the stock.
  • 1/29/2018 – Helmerich & Payne was upgraded by analysts at Societe Generale from a “hold” rating to a “buy” rating.
  • 1/29/2018 – Helmerich & Payne was downgraded by analysts at Sanford C. Bernstein from an “outperform” rating to a “market perform” rating.
  • 1/26/2018 – Helmerich & Payne had its “market perform” rating reaffirmed by analysts at Cowen Inc. They now have a $60.00 price target on the stock, up previously from $50.00.
  • 1/25/2018 – Helmerich & Payne had its “hold” rating reaffirmed by analysts at Jefferies Group LLC. They now have a $69.00 price target on the stock.
  • 1/22/2018 – Helmerich & Payne was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. 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.”
  • 1/12/2018 – Helmerich & Payne was downgraded by analysts at UBS Group AG from a “buy” rating to a “hold” rating. They now have a $70.00 price target on the stock.
  • 1/9/2018 – Helmerich & Payne is now covered by analysts at Stephens. They set an “equal weight” rating and a $67.00 price target on the stock.
  • 1/4/2018 – Helmerich & Payne was given a new $65.00 price target on by analysts at Jefferies Group LLC. They now have a “hold” rating on the stock.
  • 1/4/2018 – Helmerich & Payne was upgraded by analysts at Citigroup Inc from a “sell” rating to a “neutral” rating.
  • 12/21/2017 – Helmerich & Payne was given a new $68.00 price target on by analysts at Royal Bank of Canada. They now have a “hold” rating on the stock.
  • 12/21/2017 – Helmerich & Payne was upgraded by analysts at Tudor Pickering from a “hold” rating to a “buy” rating.

Shares of Helmerich & Payne, Inc. (NYSE HP) opened at $63.62 on Monday. Helmerich & Payne, Inc. has a 1 year low of $42.16 and a 1 year high of $75.02. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.89 and a current ratio of 3.28. The firm has a market cap of $6,926.10, a P/E ratio of 17.29 and a beta of 1.27.

Helmerich & Payne (NYSE:HP) last released its quarterly earnings results on Thursday, January 25th. The oil and gas company reported ($0.02) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.16) by $0.14. Helmerich & Payne had a net margin of 20.30% and a negative return on equity of 1.90%. The business had revenue of $564.10 million during the quarter, compared to the consensus estimate of $547.64 million. During the same quarter last year, the company earned ($0.33) earnings per share. The business’s quarterly revenue was up 53.0% compared to the same quarter last year. research analysts expect that Helmerich & Payne, Inc. will post -0.08 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 1st. Stockholders of record on Monday, February 12th will be given a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 4.40%. The ex-dividend date of this dividend is Friday, February 9th. Helmerich & Payne’s payout ratio is currently 76.09%.

In other news, Director Chapman Paula Marshall sold 4,122 shares of the firm’s stock in a transaction that occurred on Friday, February 2nd. The shares were sold at an average price of $71.40, for a total transaction of $294,310.80. Following the completion of the sale, the director now owns 16,647 shares of the company’s stock, valued at $1,188,595.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 4.10% of the stock is currently owned by company insiders.

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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