Zacks Investment Research Downgrades Halliburton Co. (HAL) to Hold
Halliburton Co. (NYSE:HAL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Friday.
According to Zacks, “We like Halliburton’s leading position in the North American oilfield services market, with particular emphasis on the unconventional shale plays. Halliburton has held up well amid the rig count carnage that has hit activity levels and pricing. This can be attributed to aggressive expense management. Moreover, with the recent OPEC deal and the subsequent advancement of crude oil, producers are likely to revive spending on drilling activities that would spur rig count. However, with the failure of BHI acquisition, Halliburton had to book a massive $3.5 billion in breakup charges. Halliburton was also forced to cut back operations in Venezuela after it struggled to get paid for services already rendered. Hence, we advise investors to wait for a better entry point before buying shares in Halliburton.”
Several other research firms have also weighed in on HAL. Citigroup Inc. raised their price objective on shares of Halliburton from $52.00 to $57.00 and gave the stock a “buy” rating in a report on Tuesday, October 11th. FBR & Co raised their price objective on shares of Halliburton from $53.00 to $58.00 and gave the stock an “outperform” rating in a report on Friday. Stephens reaffirmed a “top pick” rating on shares of Halliburton in a report on Friday, July 15th. Vetr lowered shares of Halliburton from a “buy” rating to a “hold” rating and set a $46.86 price objective for the company. in a report on Thursday, October 6th. Finally, Societe Generale lowered shares of Halliburton from a “buy” rating to a “hold” rating and raised their price objective for the stock from $46.00 to $50.00 in a report on Monday, July 18th. Two research analysts have rated the stock with a sell rating, nine have given a hold rating, twenty-seven have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average target price of $47.30.
Shares of Halliburton (NYSE:HAL) opened at 46.32 on Friday. The firm’s 50-day moving average is $43.78 and its 200 day moving average is $42.70. The firm’s market capitalization is $39.89 billion. Halliburton has a 52 week low of $27.64 and a 52 week high of $47.96.
Halliburton (NYSE:HAL) last posted its quarterly earnings data on Wednesday, July 20th. The oilfield services company reported ($0.14) earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.19) by $0.05. The company earned $3.84 billion during the quarter, compared to analyst estimates of $3.76 billion. Halliburton had a negative net margin of 30.50% and a positive return on equity of 3.55%. The company’s revenue was down 35.2% on a year-over-year basis. During the same quarter last year, the business posted $0.44 earnings per share. Equities research analysts forecast that Halliburton will post ($0.18) EPS for the current fiscal year.
In other news, insider James S. Brown sold 28,439 shares of the company’s stock in a transaction that occurred on Monday, October 10th. The shares were sold at an average price of $47.00, for a total transaction of $1,336,633.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.46% of the company’s stock.
Several hedge funds have recently modified their holdings of HAL. Capital Research Global Investors boosted its position in Halliburton by 2.5% in the second quarter. Capital Research Global Investors now owns 57,462,943 shares of the oilfield services company’s stock worth $2,602,497,000 after buying an additional 1,426,237 shares in the last quarter. Vanguard Group Inc. boosted its position in Halliburton by 2.0% in the second quarter. Vanguard Group Inc. now owns 53,056,563 shares of the oilfield services company’s stock worth $2,402,932,000 after buying an additional 1,024,207 shares in the last quarter. State Street Corp boosted its position in Halliburton by 1.1% in the second quarter. State Street Corp now owns 40,360,728 shares of the oilfield services company’s stock worth $1,827,936,000 after buying an additional 449,869 shares in the last quarter. Capital World Investors boosted its position in Halliburton by 13.4% in the second quarter. Capital World Investors now owns 29,055,680 shares of the oilfield services company’s stock worth $1,315,932,000 after buying an additional 3,440,198 shares in the last quarter. Finally, Waddell & Reed Financial Inc. boosted its position in Halliburton by 11.9% in the second quarter. Waddell & Reed Financial Inc. now owns 18,587,275 shares of the oilfield services company’s stock worth $841,818,000 after buying an additional 1,981,618 shares in the last quarter. 79.74% of the stock is owned by institutional investors.
Halliburton Company Profile
Halliburton Company is a provider of services and products to the upstream oil and natural gas industry. The Company operates through two segments: the Completion and Production segment, and the Drilling and Evaluation segment. The Company’s Completion and Production segment delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift, and completion products and services.
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