Oppenheimer slashes price target on Baxter International Inc. [BAX] – find out why.

Baxter International Inc. [NYSE: BAX] price plunged by -2.50 percent to reach at -$2.08. The company report on July 30, 2020 that Baxter Reports Second-Quarter 2020 Results.

Second-quarter revenue of $2.7 billion decreased 4% on a reported basis, 1% on a constant currency basis and 2% on an operational basis1.

Second-quarter U.S. GAAP earnings per share (EPS) of $0.48 declined 20%; adjusted EPS of $0.64 declined 24%.

A sum of 5459537 shares traded at recent session while its average daily volume was at 2.94M shares. Baxter International Inc. shares reached a high of $83.24 and dropped to a low of $80.93 until finishing in the latest session at $81.08.

The one-year BAX stock forecast points to a potential upside of 15.85. The average equity rating for BAX stock is currently 1.90, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on Baxter International Inc. [BAX]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for BAX shares is $96.35 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on BAX stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Oppenheimer have made an estimate for Baxter International Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on June 24, 2020. While these analysts kept the previous recommendation, Stifel raised their target price from $87 to $95. The new note on the price target was released on March 19, 2020, representing the official price target for Baxter International Inc. stock. Previously, the target price had yet another raise to $92, while KeyBanc Capital Markets analysts kept a Overweight rating on BAX stock.

The Average True Range (ATR) for Baxter International Inc. is set at 2.25, with the Price to Sales ratio for BAX stock in the period of the last 12 months amounting to 3.60. The Price to Book ratio for the last quarter was 5.08, with the Price to Cash per share for the same quarter was set at 8.06. Price to Free Cash Flow for BAX in the course of the last twelve months was 40.39 with Quick ratio for the last quarter at 2.30.

BAX Stock Performance Analysis:

Baxter International Inc. [BAX] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -9.16. With this latest performance, BAX shares dropped by -7.98% in over the last four-week period, additionally sinking by -10.77% over the last 6 months – not to mention a drop of -1.01% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for BAX stock in for the last two-week period is set at 33.13, with the RSI for the last a single of trading hit 27.24, and the three-weeks RSI is set at 38.91 for Baxter International Inc. [BAX]. The present Moving Average for the last 50 days of trading for this stock 86.49, while it was recorded at 85.47 for the last single week of trading, and 85.45 for the last 200 days.

Insight into Baxter International Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Baxter International Inc. [BAX] shares currently have an operating margin of +16.79 and a Gross Margin at +43.01. Baxter International Inc.’s Net Margin is presently recorded at +8.81.

Return on Total Capital for BAX is now 15.16, given the latest momentum, and Return on Invested Capital for the company is 8.18. Return on Equity for this stock inclined to 12.77, with Return on Assets sitting at 5.92. When it comes to the capital structure of this company, Baxter International Inc. [BAX] has a Total Debt to Total Equity ratio set at 75.63. Additionally, BAX Total Debt to Total Capital is recorded at 43.06, with Total Debt to Total Assets ending up at 32.77. Long-Term Debt to Equity for the company is recorded at 67.48, with the Long-Term Debt to Total Capital now at 38.42.

Reflecting on the efficiency of the workforce at the company, Baxter International Inc. [BAX] managed to generate an average of $20,020 per employee. Receivables Turnover for the company is 6.13 with a Total Asset Turnover recorded at a value of 0.67.Baxter International Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.30 and a Current Ratio set at 3.00.

BAX Stock EPS

With the latest financial reports released by the company, Baxter International Inc. posted 0.74/share EPS, while the average EPS was predicted by analysts to be reported at 0.84/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -11.90%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for BAX. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Baxter International Inc. go to 9.00%.

Baxter International Inc. [BAX] Insider Position Details

There are presently around $35,167 million, or 89.30% of BAX stock, in the hands of institutional investors. The top three institutional holders of BAX stocks are: BLACKROCK INC. with ownership of 41,287,129, which is approximately 1.205% of the company’s market cap and around 0.20% of the total institutional ownership; VANGUARD GROUP INC, holding 40,331,212 shares of the stock with an approximate value of $3.27 billion in BAX stocks shares; and WELLINGTON MANAGEMENT GROUP LLP, currently with $2.43 billion in BAX stock with ownership of nearly -4.188% of the company’s market capitalization.

Positions in Baxter International Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 396 institutional holders increased their position in Baxter International Inc. [NYSE:BAX] by around 44,025,089 shares. Additionally, 582 investors decreased positions by around 36,461,638 shares, while 225 investors held positions by with 353,239,442 shares. The mentioned changes placed institutional holdings at 433,726,169 shares, according to the latest SEC report filing. BAX stock had 84 new institutional investments in for a total of 4,468,218 shares, while 89 institutional investors sold positions of 2,848,541 shares during the same period.

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