Baxter International (NYSE:BAX) Trading Down 5.2% on Disappointing Earnings

Baxter International Inc (NYSE:BAX) traded down 5.2% during trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $82.92 and last traded at $86.01, 8,532,352 shares were traded during mid-day trading. An increase of 174% from the average session volume of 3,113,272 shares. The stock had previously closed at $90.73.

The medical instruments supplier reported $0.64 EPS for the quarter, missing the Zacks’ consensus estimate of $0.71 by ($0.07). Baxter International had a net margin of 8.10% and a return on equity of 21.02%. The company had revenue of $2.72 billion during the quarter, compared to analyst estimates of $2.86 billion. During the same quarter in the previous year, the firm earned $0.89 earnings per share. The business’s revenue was down 4.3% on a year-over-year basis.

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Monday, August 31st will be given a dividend of $0.245 per share. The ex-dividend date is Friday, August 28th. This represents a $0.98 annualized dividend and a dividend yield of 1.13%. Baxter International’s dividend payout ratio is presently 29.61%.

Several equities analysts have recently issued reports on BAX shares. Wells Fargo & Co boosted their price objective on Baxter International from $92.00 to $104.00 and gave the stock an “overweight” rating in a research report on Monday, April 20th. KeyCorp boosted their price objective on Baxter International from $92.00 to $98.00 and gave the stock an “overweight” rating in a research report on Friday, May 1st. SVB Leerink boosted their price objective on Baxter International from $96.00 to $105.00 and gave the stock an “outperform” rating in a research report on Friday, May 1st. Zacks Investment Research downgraded Baxter International from a “hold” rating to a “sell” rating and set a $93.00 price objective for the company. in a research report on Tuesday, July 7th. Finally, JPMorgan Chase & Co. upped their target price on Baxter International from $94.00 to $96.00 and gave the stock an “overweight” rating in a research report on Tuesday, April 28th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and fourteen have assigned a buy rating to the company. Baxter International currently has an average rating of “Buy” and a consensus target price of $96.72.

In other Baxter International news, SVP Andrew Frye sold 3,742 shares of the business’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $91.00, for a total transaction of $340,522.00. Following the sale, the senior vice president now directly owns 16,216 shares of the company’s stock, valued at approximately $1,475,656. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director John D. Forsyth sold 1,500 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $82.95, for a total transaction of $124,425.00. Following the completion of the transaction, the director now directly owns 35,398 shares in the company, valued at $2,936,264.10. The disclosure for this sale can be found here. Over the last three months, insiders have sold 77,583 shares of company stock worth $6,613,932. Company insiders own 0.13% of the company’s stock.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Campbell Wealth Management acquired a new position in shares of Baxter International in the second quarter worth $26,000. Allworth Financial LP increased its stake in shares of Baxter International by 118.9% in the second quarter. Allworth Financial LP now owns 313 shares of the medical instruments supplier’s stock worth $27,000 after acquiring an additional 170 shares during the last quarter. Financial Management Professionals Inc. acquired a new position in shares of Baxter International in the second quarter worth $28,000. Creative Financial Designs Inc. ADV acquired a new position in shares of Baxter International in the second quarter worth $30,000. Finally, Harwood Advisory Group LLC acquired a new position in shares of Baxter International in the first quarter worth $32,000. 83.74% of the stock is currently owned by institutional investors and hedge funds.

The company has a quick ratio of 2.19, a current ratio of 2.74 and a debt-to-equity ratio of 0.84. The firm has a market capitalization of $43.81 billion, a price-to-earnings ratio of 26.10, a P/E/G ratio of 2.75 and a beta of 0.84. The stock’s 50 day moving average price is $86.00 and its two-hundred day moving average price is $86.95.

About Baxter International (NYSE:BAX)

Baxter International Inc, through its subsidiaries, develops and provides a portfolio of healthcare products. The company operates through North and South America; Europe, Middle East and Africa; and Asia-Pacific segments. The company offers peritoneal dialysis and hemodialysis, and additional dialysis therapies and services; renal replacement therapies and other organ support therapies focused in the intensive care unit; sterile intravenous (IV) solutions, IV therapies, infusion pumps, administration sets, and drug reconstitution devices; and parenteral nutrition therapies.

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