Halliburton (NYSE:HAL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “Halliburton’s shares have outperformed the Zacks Oil & Gas Field Services industry over the past 6 months (up +9.84% vs. -0.28%). This price performance is backed by phenomenal earnings surprise history, with HAL having surpassed expectations in all the trailing 14 quarters. The world’s No. 2 oilfield-services provider's consistently strong numbers could be attributed to improved utilization and pricing gains in North America. Of late, HAL has also been aided by margin expansion at its drilling and evaluation product lines, while the international market continues to improve. However, cost inflation triggered by increased fracking sand pricing is likely to dampen investor confidence. Moreover, with the failure of BHI acquisition, HAL had to book a massive $3.5 billion in breakup charges that stretched its balance sheet. Hence, we advise investors to wait for a better entry point before buying shares in HAL.”
Several other brokerages have also commented on HAL. ValuEngine lowered Halliburton from a “hold” rating to a “sell” rating in a research report on Thursday, March 8th. Atlantic Securities upgraded Halliburton from an “underweight” rating to a “neutral” rating in a research report on Monday, January 29th. Bank of America cut Halliburton from a “buy” rating to a “neutral” rating and set a $50.00 target price for the company. in a report on Monday, February 26th. Credit Suisse Group restated an “outperform” rating and set a $65.00 target price (up from $55.00) on shares of Halliburton in a report on Tuesday, January 23rd. Finally, Cowen set a $55.00 target price on Halliburton and gave the company a “hold” rating in a report on Thursday, January 11th. Two investment analysts have rated the stock with a sell rating, five have given a hold rating and twenty-two have given a buy rating to the company. The stock has an average rating of “Buy” and an average target price of $59.09.
Halliburton (NYSE:HAL) last announced its quarterly earnings data on Monday, January 22nd. The oilfield services company reported $0.53 EPS for the quarter, beating the consensus estimate of $0.46 by $0.07. The firm had revenue of $5.94 billion for the quarter, compared to analyst estimates of $5.63 billion. Halliburton had a positive return on equity of 11.95% and a negative net margin of 2.25%. The company’s revenue was up 47.7% on a year-over-year basis. During the same period in the prior year, the company earned $0.04 EPS. analysts expect that Halliburton will post 2.55 EPS for the current year.
In other Halliburton news, Director Jeffrey Allen Miller sold 29,025 shares of the stock in a transaction that occurred on Monday, January 22nd. The stock was sold at an average price of $55.00, for a total value of $1,596,375.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Robb L. Voyles sold 39,287 shares of the firm’s stock in a transaction that occurred on Monday, January 22nd. The shares were sold at an average price of $55.00, for a total value of $2,160,785.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 125,922 shares of company stock valued at $6,706,509. Company insiders own 0.47% of the company’s stock.
Several institutional investors and hedge funds have recently added to or reduced their stakes in HAL. Sanders Capital LLC purchased a new position in shares of Halliburton in the 4th quarter valued at approximately $163,920,000. Beutel Goodman & Co Ltd. purchased a new position in shares of Halliburton in the 4th quarter valued at approximately $118,644,000. BlackRock Inc. lifted its stake in shares of Halliburton by 3.9% in the 4th quarter. BlackRock Inc. now owns 63,837,947 shares of the oilfield services company’s stock valued at $3,119,761,000 after purchasing an additional 2,421,658 shares during the period. Amundi Pioneer Asset Management Inc. purchased a new position in shares of Halliburton in the 4th quarter valued at approximately $105,979,000. Finally, Mackenzie Financial Corp lifted its stake in shares of Halliburton by 409.5% in the 4th quarter. Mackenzie Financial Corp now owns 2,203,182 shares of the oilfield services company’s stock valued at $107,670,000 after purchasing an additional 1,770,781 shares during the period. Institutional investors own 80.39% of the company’s stock.
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Halliburton Company Profile
Halliburton Company provides services and products to the upstream oil and natural gas industry throughout the lifecycle of the reservoir, from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the field.
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