Baxter International Inc. (NYSE:BAX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Thursday.
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. Also the strategic tie-up with Satellite Healthcare and the Sigma spectrum infusion system keeps us bullish about the company. 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 brokerages have also issued reports on BAX. Argus reissued a “hold” rating on shares of Baxter International in a research note on Monday, August 15th. JPMorgan Chase & Co. reaffirmed a “hold” rating and issued a $45.00 price objective on shares of Baxter International in a research note on Friday, July 8th. Royal Bank Of Canada upped their price objective on shares of Baxter International from $47.00 to $50.00 and gave the stock a “sector perform” rating in a research note on Wednesday, July 27th. Barclays PLC started coverage on shares of Baxter International in a research note on Thursday, September 15th. They issued an “overweight” rating and a $52.00 price objective for the company. Finally, Piper Jaffray Cos. reaffirmed an “overweight” rating and issued a $60.00 price objective on shares of Baxter International in a research note on Monday, June 13th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus target price of $48.25.
Shares of Baxter International (NYSE:BAX) opened at 47.72 on Thursday. The stock’s 50 day moving average is $47.05 and its 200-day moving average is $45.28. Baxter International has a one year low of $32.62 and a one year high of $49.49. The stock has a market cap of $25.95 billion, a P/E ratio of 5.48 and a beta of 0.71.
Baxter International (NYSE:BAX) last issued its earnings results on Tuesday, July 26th. The company reported $0.46 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.40 by $0.06. The firm earned $2.60 billion during the quarter, compared to analyst estimates of $2.51 billion. Baxter International had a net margin of 47.74% and a return on equity of 10.70%. The business’s revenue was up 4.4% on a year-over-year basis. During the same period in the previous year, the firm earned $1.00 earnings per share. On average, equities analysts forecast that Baxter International will post $1.73 EPS for the current year.
The company also recently announced a quarterly dividend, which was paid on Monday, October 3rd. Shareholders of record on Friday, September 2nd were issued a $0.13 dividend. The ex-dividend date was Wednesday, August 31st. This represents a $0.52 dividend on an annualized basis and a yield of 1.09%. Baxter International’s dividend payout ratio is presently 5.99%.
A number of institutional investors have recently made changes to their positions in BAX. Bank of New York Mellon Corp increased its position in shares of Baxter International by 6.6% in the second quarter. Bank of New York Mellon Corp now owns 5,530,764 shares of the company’s stock worth $250,102,000 after buying an additional 343,725 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Baxter International by 1.9% in the first quarter. Geode Capital Management LLC now owns 4,375,204 shares of the company’s stock worth $179,363,000 after buying an additional 82,132 shares in the last quarter. TIAA CREF Investment Management LLC increased its position in shares of Baxter International by 1.0% in the second quarter. TIAA CREF Investment Management LLC now owns 3,966,516 shares of the company’s stock worth $179,366,000 after buying an additional 39,887 shares in the last quarter. BNP Paribas Arbitrage SA increased its position 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 in the last quarter. Finally, California Public Employees Retirement System increased its position in shares of Baxter International by 39.5% in the second quarter. California Public Employees Retirement System now owns 2,059,667 shares of the company’s stock worth $93,138,000 after buying an additional 583,144 shares in the last quarter. Institutional investors and hedge funds own 84.79% 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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