Baxter International (NYSE:BAX) Shares Gap Up on Better-Than-Expected Earnings

Baxter International Inc. (NYSE:BAX)’s share 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 traded.

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

Baxter International Dividend Announcement

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

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the company. Barclays assumed coverage on Baxter International in a report on Thursday. They issued an “overweight” rating and a $39.00 target price on the stock. StockNews.com downgraded Baxter International from a “buy” rating to a “hold” rating in a research note on Monday, November 11th. Citigroup lowered their target price on Baxter International from $37.00 to $35.00 and set a “neutral” rating for the company in a research report on Wednesday, December 11th. Finally, Stifel Nicolaus reduced their price target on shares of Baxter International from $46.00 to $38.00 and set a “buy” rating on the stock in a research report on Monday, November 11th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and three have assigned a buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $39.40.

Institutional Investors Weigh In On Baxter International

Hedge funds and other institutional investors have recently made changes to their positions in the company. Sumitomo Mitsui Trust Group Inc. grew its holdings in Baxter International by 1.9% during the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,160,666 shares of the medical instruments supplier’s stock valued at $33,845,000 after purchasing an additional 21,592 shares during the last quarter. Nicholas Hoffman & Company LLC. purchased a new stake in shares of Baxter International in the fourth quarter worth approximately $907,000. Geode Capital Management LLC lifted its stake in shares of Baxter International by 1.4% during the 3rd quarter. Geode Capital Management LLC now owns 12,156,660 shares of the medical instruments supplier’s stock worth $460,022,000 after acquiring an additional 170,776 shares during the last quarter. Entropy Technologies LP lifted its stake in shares of Baxter International by 213.5% during the 3rd quarter. Entropy Technologies LP now owns 23,192 shares of the medical instruments supplier’s stock worth $881,000 after acquiring an additional 15,794 shares during the last quarter. Finally, Toronto Dominion Bank boosted its holdings in Baxter International by 15.4% during the 3rd quarter. Toronto Dominion Bank now owns 170,855 shares of the medical instruments supplier’s stock valued at $6,487,000 after acquiring an additional 22,787 shares during the period. Hedge funds and other institutional investors own 90.19% of the company’s stock.

Baxter International Stock Up 7.4 %

The company has a market cap of $16.89 billion, a P/E ratio of 165.77, a P/E/G ratio of 9.95 and a beta of 0.61. The company has a 50-day simple moving average of $30.52 and a 200 day simple moving average of $34.15. The company has a current ratio of 1.43, a quick ratio of 1.09 and a debt-to-equity ratio of 1.31.

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.