Stock of the Day

May 1, 2024

Baker Hughes (BKR)

$45.62
-$1.29 (-2.7%)
Market Cap: $46.45B

About Baker Hughes

Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide. The company operates through Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET) segments. The OFSE segment designs and manufactures products and provides related services, including exploration, appraisal, development, production, rejuvenation, and decommissioning for onshore and offshore oilfield operations. This segment also provides drilling services, drill bits, and drilling and completions fluids; completions, intervention, measurements, pressure pumping, and wireline services; artificial lift systems, and oilfield and industrial chemicals; subsea projects and services, flexible pipe systems, and surface pressure control systems; and integrated well services and solutions. It serves oil and natural gas companies; the United States and international independent oil and natural gas companies; national or state-owned oil companies; engineering, procurement, and construction contractors; geothermal companies; and other oilfield service companies. The IET segment provides gas technology equipment, including drivers, driven equipment, flow control, and turnkey solutions for the mechanical-drive, compression, and power-generation applications; and energy sectors, such as oil and gas, LNG operations, petrochemical, and carbon solutions. This segment also provides rack-based vibration monitoring equipment and sensors; integrated asset performance management products; inspection services; pumps, valves, and gears; precision sensors and instrumentation, and condition monitoring solutions. It serves upstream, midstream, downstream, onshore, offshore, and small and large scale customers. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. Baker Hughes Company was incorporated in 2016 and is based in Houston, Texas.

Baker Hughes Bull Case

Here are some ways that investors could benefit from investing in Baker Hughes:

  • Baker Hughes has recently seen significant institutional investment, with Congress Asset Management Co. acquiring over 2.6 million shares valued at approximately $107 million, indicating strong confidence in the company's future performance.
  • The stock price of Baker Hughes is currently at $46.89, reflecting a positive market sentiment and potential for growth, especially considering its 1-year high of $49.40.
  • Institutional investors own a substantial 92.06% of Baker Hughes, suggesting that the company is viewed favorably by large financial entities, which can provide stability and credibility.
  • Recent insider transactions, such as the sale of shares by EVP Maria C. Borras, indicate active management engagement, which can be a sign of confidence in the company's direction.
  • Baker Hughes has shown resilience in its stock performance, with a 1-year low of $28.66, demonstrating its ability to recover and maintain investor interest even in fluctuating market conditions.

Baker Hughes Bear Case

Investors should be bearish about investing in Baker Hughes for these reasons:

  • Van ECK Associates Corp recently reduced its stake in Baker Hughes by 16.7%, selling over 936,000 shares, which may signal concerns about the company's short-term performance.
  • Despite recent gains, the stock has experienced volatility, with significant trading volume fluctuations, which can indicate uncertainty among investors.
  • Insider ownership is relatively low at 0.25%, which may suggest that executives do not have a significant personal stake in the company's success, potentially affecting their motivation to drive performance.
  • The company's debt-to-equity ratio stands at 0.35, which, while manageable, indicates that Baker Hughes is not entirely debt-free, posing a risk if market conditions worsen.
  • Recent trading activity shows mixed results, with shares trading down 0.2% on a recent day, which could reflect broader market trends or specific concerns about the company's outlook.

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