Texas (June 30, 2014) Wax Ink has issued a Negative Investment Interest opinion for Baker Hughes, Inc. (NYSE: BHI), based on a recent intrinsic value review that placed fair value for the company between $59-$67.
A Negative Investment Interest opinion (sell) means that the current key performance indicators (KPIs) and associated financial metrics do not favor a position in this stock as an active investment at this time.
The recent close of $73.96 is approximately 111% above a fair value buy target for the stock and approximately 2% above a fair value close target for the stock. The recent close is also 7% below analysts' twelve-month $79.50 median price target for the stock.
The recent close represents a 61% increase in the one-year price of the stock, while year-over-year sales increased 5%, year-over-year earnings decreased 16%, year-over-year debt decreased 10%, and year-over-year free cash flow increased 35%.
The company paid a dividend of $0.61 which represents a year-over-year dividend increase of 2%.
The stock currently has a trailing twelve-month PE Ratio of 13, and a PEG Ratio of 1 basis estimated forward earnings growth of 13%.
In the past 52 weeks, share prices have moved between a high of $75.04 and a low of $45.70, placing current equilibrium at $65.49. With the recent close, the stock is trading 1.5% below the 52 week high, 38% above the 52 week low, and 11.5% above current equilibrium.
The three-month average daily trading volume for this stock is approximately 3.622 million shares and the average daily volume is approximately 3.514 million shares. There are approximately 5.606 million short interest shares which places the days to cover at 1.803.
Baker Hughes, Inc. supplies oilfield services, products, technology, and systems to the oil and natural gas industry worldwide.
The company's listed competitors include Schlumberger Limited, Weatherford International plc, and Halliburton Company.
Financial information contained herein, was extracted from the company's most recent annual SEC filing for year ending December 31, 2013 and all prices are per share unless otherwise noted.
Wax Ink currently has no investment position in any company mentioned in this alert.
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Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.