Zacks Investment Research lowered shares of Helmerich & Payne (NYSE:HP) from a strong-buy rating to a hold rating in a research report released on Thursday morning.
According to Zacks, “The improving outlook at Helmerich & Payne’s biggest unit – U.S. Land – and rising commodity prices are set to provide the contract driller with exciting opportunities to deploy its technologically-advanced FlexRigs. Healthier drilling activity in U.S. Land segment amid higher utilizations and dayrates should drive the company’s near-term earnings and cash flows, while the MagVar acquisition will enable it to drill wells more efficiently and accurately. 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. The company’s stagnating revenue growth and Permian service cost inflation are other negatives in the HP story. Hence, investors are advised to wait for a better entry point before buying shares in Helmerich & Payne.”
HP has been the topic of several other reports. Royal Bank of Canada upgraded Helmerich & Payne from a sector perform rating to an outperform rating and set a $90.00 price target on the stock in a report on Thursday, September 20th. Stephens upgraded Helmerich & Payne from an equal weight rating to an overweight rating and set a $67.00 price target on the stock in a report on Monday, July 30th. JPMorgan Chase & Co. upgraded Helmerich & Payne from an underweight rating to a neutral rating and increased their price target for the stock from $49.00 to $58.00 in a report on Friday, September 14th. Jefferies Financial Group upgraded Helmerich & Payne from a hold rating to a buy rating in a report on Wednesday, June 27th. Finally, Piper Jaffray Companies set a $67.00 price target on Helmerich & Payne and gave the stock a hold rating in a report on Sunday, July 29th. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating and twelve have assigned a buy rating to the stock. Helmerich & Payne presently has a consensus rating of Hold and a consensus target price of $68.93.
Helmerich & Payne (NYSE:HP) last issued its quarterly earnings results on Wednesday, July 25th. The oil and gas company reported ($0.01) earnings per share for the quarter, missing the consensus estimate of $0.03 by ($0.04). Helmerich & Payne had a negative return on equity of 0.37% and a net margin of 19.70%. The business had revenue of $648.87 million during the quarter, compared to analysts’ expectations of $617.06 million. During the same quarter in the previous year, the company posted ($0.25) earnings per share. The company’s quarterly revenue was up 30.1% compared to the same quarter last year. Research analysts expect that Helmerich & Payne will post 0.04 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 3rd. Shareholders of record on Monday, November 12th will be issued a dividend of $0.71 per share. The ex-dividend date of this dividend is Thursday, November 8th. This represents a $2.84 annualized dividend and a yield of 3.95%. Helmerich & Payne’s payout ratio is currently -223.62%.
In other Helmerich & Payne news, CEO John W. Lindsay sold 30,000 shares of the firm’s stock in a transaction on Monday, October 1st. The stock was sold at an average price of $70.00, for a total transaction of $2,100,000.00. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Chapman Paula Marshall sold 11,309 shares of the firm’s stock in a transaction on Friday, September 14th. The stock was sold at an average price of $65.13, for a total value of $736,555.17. Following the transaction, the director now owns 14,874 shares in the company, valued at $968,743.62. The disclosure for this sale can be found here. Company insiders own 4.10% of the company’s stock.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Summit Trail Advisors LLC increased its holdings in shares of Helmerich & Payne by 8,098.5% in the 1st quarter. Summit Trail Advisors LLC now owns 109,368 shares of the oil and gas company’s stock valued at $109,000 after acquiring an additional 108,034 shares during the period. Flagship Harbor Advisors LLC purchased a new position in shares of Helmerich & Payne in the 2nd quarter valued at $134,000. Viking Fund Management LLC purchased a new position in shares of Helmerich & Payne in the 2nd quarter valued at $159,000. Rampart Investment Management Company LLC increased its holdings in shares of Helmerich & Payne by 84.3% in the 1st quarter. Rampart Investment Management Company LLC now owns 2,453 shares of the oil and gas company’s stock valued at $163,000 after acquiring an additional 1,122 shares during the period. Finally, Independent Advisor Alliance purchased a new position in shares of Helmerich & Payne in the 2nd quarter valued at $207,000. Institutional investors own 92.10% of the company’s stock.
Helmerich & Payne Company Profile
Helmerich & Payne, Inc primarily engages in drilling oil and gas wells for exploration and production companies. The company operates through U.S. Land, Offshore, and International Land segments. The U.S. Land segment drills primarily in Colorado, Louisiana, Ohio, Oklahoma, New Mexico, North Dakota, Pennsylvania, Texas, Utah, West Virginia, and Wyoming.
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