Baxter International (NYSE:BAX) Shares Gap Up After Strong Earnings

Baxter International Inc. (NYSE:BAX)’s stock price gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $30.82, but opened at $33.29. Baxter International shares last traded at $33.23, with a volume of 1,512,522 shares trading hands.

The medical instruments supplier reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.52 by $0.06. Baxter International had a net margin of 0.77% and a return on equity of 18.30%.

Baxter International Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 1st. Investors of record on Friday, February 28th will be issued a $0.17 dividend. The ex-dividend date of this dividend is Friday, February 28th. This represents a $0.68 annualized dividend and a yield of 2.06%. Baxter International’s payout ratio is 340.02%.

Wall Street Analysts Forecast Growth

BAX has been the topic of a number of recent analyst reports. Barclays started coverage on shares of Baxter International in a report on Thursday. They set an “overweight” rating and a $39.00 price target on the stock. Stifel Nicolaus dropped their target price on shares of Baxter International from $46.00 to $38.00 and set a “buy” rating on the stock in a report on Monday, November 11th. Citigroup decreased their target price on shares of Baxter International from $37.00 to $35.00 and set a “neutral” rating for the company in a research note on Wednesday, December 11th. Finally, StockNews.com downgraded Baxter International from a “buy” rating to a “hold” rating in a research note on Monday, November 11th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and three have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Baxter International has an average rating of “Hold” and an average target price of $39.40.

Hedge Funds Weigh In On Baxter International

Institutional investors and hedge funds have recently bought and sold shares of the stock. CKW Financial Group raised its stake in shares of Baxter International by 19.3% in the fourth quarter. CKW Financial Group now owns 2,625 shares of the medical instruments supplier’s stock worth $77,000 after buying an additional 425 shares during the period. Farther Finance Advisors LLC lifted its holdings in Baxter International by 23.2% during the third quarter. Farther Finance Advisors LLC now owns 2,519 shares of the medical instruments supplier’s stock valued at $96,000 after purchasing an additional 475 shares in the last quarter. LRI Investments LLC boosted its position in shares of Baxter International by 60.8% in the third quarter. LRI Investments LLC now owns 1,560 shares of the medical instruments supplier’s stock worth $59,000 after purchasing an additional 590 shares during the period. Whittier Trust Co. of Nevada Inc. increased its stake in shares of Baxter International by 5.8% in the fourth quarter. Whittier Trust Co. of Nevada Inc. now owns 13,618 shares of the medical instruments supplier’s stock worth $397,000 after purchasing an additional 752 shares in the last quarter. Finally, Greenleaf Trust raised its position in shares of Baxter International by 10.0% during the 3rd quarter. Greenleaf Trust now owns 9,491 shares of the medical instruments supplier’s stock valued at $360,000 after purchasing an additional 859 shares during the period. 90.19% of the stock is currently owned by hedge funds and other institutional investors.

Baxter International Stock Performance

The company has a market cap of $16.89 billion, a PE ratio of 165.77, a PEG ratio of 9.95 and a beta of 0.61. The company has a current ratio of 1.43, a quick ratio of 1.09 and a debt-to-equity ratio of 1.31. The business’s 50 day moving average is $30.52 and its two-hundred day moving average is $34.15.

About Baxter International

Baxter International Inc, through its subsidiaries, develops and provides a portfolio of healthcare products worldwide. The company operates through four segments: Medical Products and Therapies, Healthcare Systems and Technologies, Pharmaceuticals, and Kidney Care. The company offers sterile intravenous (IV) solutions; infusion systems and devices; parenteral nutrition therapies; generic injectable pharmaceuticals; surgical hemostat and sealant products, advanced surgical equipment; smart bed systems; patient monitoring and diagnostic technologies; and respiratory health devices, as well as advanced equipment for the surgical space, including surgical video technologies, precision positioning devices, and other accessories.