Zacks Investment Research Upgrades Halliburton Co. (HAL) to “Buy”
Halliburton Co. (NYSE:HAL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Monday. The firm currently has a $55.00 price target on the oilfield services company’s stock. Zacks Investment Research’s target price would indicate a potential upside of 15.09% from the company’s current price.
According to Zacks, “Halliburton's stock performance has been pretty exciting lately. Shares are at fresh highs these days, and the stock has recovered nicely from its rough start to 2016 when oil prices fell to a 12-year low. Boasting of an impressive earnings history, Halliburton has used the challenges prevailing in the sector to its advantage, mainly by offering low cost solutions that aids producers in churning out more by investing less. With industry observers hopeful about an OPEC deal and the subsequent advancement of oil, producers are likely to revive spending on drilling activities that would spur rig count even higher. This, in turn, will result in improved demand for oilfield equipments. Consequently, we think Halliburton offers upside potential from current levels and label it as an attractive investment.”
HAL has been the subject of several other research reports. Vetr cut shares of Halliburton from a “hold” rating to a “sell” rating and set a $46.86 price objective for the company. in a research note on Wednesday, October 19th. Cowen and Company boosted their target price on shares of Halliburton from $40.00 to $45.00 and gave the company a “market perform” rating in a research report on Thursday, October 20th. Nomura restated a “buy” rating and issued a $61.00 target price (up from $54.00) on shares of Halliburton in a research report on Thursday, October 20th. FBR & Co set a $58.00 target price on shares of Halliburton and gave the company a “buy” rating in a research report on Thursday, October 20th. Finally, Societe Generale restated a “buy” rating and issued a $58.00 target price on shares of Halliburton in a research report on Sunday, October 23rd. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating, twenty-eight have given a buy rating and one has issued a strong buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average price target of $50.81.
Shares of Halliburton (NYSE:HAL) opened at 47.79 on Monday. The firm’s 50-day moving average is $47.87 and its 200 day moving average is $44.70. The company’s market capitalization is $41.31 billion. Halliburton has a 52 week low of $27.64 and a 52 week high of $50.49.
Halliburton (NYSE:HAL) last issued its quarterly earnings data on Wednesday, October 19th. The oilfield services company reported $0.01 earnings per share for the quarter, topping the consensus estimate of ($0.07) by $0.08. Halliburton had a negative net margin of 33.29% and a positive return on equity of 1.82%. The business earned $3.83 billion during the quarter, compared to analysts’ expectations of $3.87 billion. During the same quarter in the previous year, the company earned $0.31 EPS. The business’s revenue was down 31.3% on a year-over-year basis. On average, analysts anticipate that Halliburton will post ($0.05) earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 28th. Stockholders of record on Wednesday, December 7th will be paid a $0.18 dividend. The ex-dividend date is Monday, December 5th. This represents a $0.72 annualized dividend and a dividend yield of 1.51%. Halliburton’s payout ratio is -10.98%.
In other news, insider Joe D. Rainey sold 23,162 shares of the company’s stock in a transaction on Monday, November 21st. The shares were sold at an average price of $50.23, for a total value of $1,163,427.26. Following the completion of the sale, the insider now owns 185,819 shares in the company, valued at approximately $9,333,688.37. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Chairman David J. Lesar sold 10,000 shares of the company’s stock in a transaction on Wednesday, October 19th. The stock was sold at an average price of $49.99, for a total transaction of $499,900.00. The disclosure for this sale can be found here. 0.46% of the stock is currently owned by insiders.
Hedge funds have recently bought and sold shares of the company. Capital World Investors raised its stake in Halliburton by 25.0% in the third quarter. Capital World Investors now owns 36,312,180 shares of the oilfield services company’s stock valued at $1,629,691,000 after buying an additional 7,256,500 shares during the last quarter. Jennison Associates LLC raised its stake in Halliburton by 58.1% in the third quarter. Jennison Associates LLC now owns 17,365,068 shares of the oilfield services company’s stock valued at $779,344,000 after buying an additional 6,379,445 shares during the last quarter. FMR LLC raised its stake in Halliburton by 40.1% in the second quarter. FMR LLC now owns 13,373,769 shares of the oilfield services company’s stock valued at $605,699,000 after buying an additional 3,829,088 shares during the last quarter. Bank of Montreal Can purchased a new stake in Halliburton during the second quarter valued at about $126,987,000. Finally, Capital Research Global Investors raised its stake in Halliburton by 4.6% in the third quarter. Capital Research Global Investors now owns 60,102,325 shares of the oilfield services company’s stock valued at $2,697,392,000 after buying an additional 2,639,382 shares during the last quarter. Hedge funds and other institutional investors own 78.27% of the company’s stock.
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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