Zacks Investment Research cut shares of Halliburton Co. (NYSE:HAL) from a buy rating to a hold rating in a research note issued to investors on Tuesday morning.
According to Zacks, “Despite the weak commodity pricing environment, Halliburton has maintained its excellent track record of earnings surprise history, beating estimates in each of the last nine quarters. The world’s second largest oilfield-services provider's results reflect effective cost management and improved utilization on the back of growing North American rig count. In fact, Halliburton has used the challenges prevailing in the industry to its advantage, mainly by offering low cost solutions that aids producers in churning out more by investing less. 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.”
Other equities analysts have also recently issued research reports about the company. Citigroup Inc. reissued a buy rating on shares of Halliburton in a report on Friday, October 21st. Loop Capital reissued a buy rating and set a $53.00 price target on shares of Halliburton in a report on Thursday, October 20th. FBR & Co set a $58.00 price target on Halliburton and gave the stock a buy rating in a report on Thursday, October 20th. Johnson Rice reissued an accumulate rating on shares of Halliburton in a report on Monday, July 25th. Finally, Iberia Capital boosted their price target on Halliburton from $55.00 to $60.00 and gave the stock an outperform rating in a report on Thursday, October 20th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating, twenty-eight have issued a buy rating and one has assigned a strong buy rating to the company. The stock has an average rating of Buy and an average price target of $50.81.
Halliburton (NYSE:HAL) opened at 49.47 on Tuesday. The firm has a 50-day moving average price of $47.64 and a 200 day moving average price of $44.44. The firm’s market cap is $42.76 billion. Halliburton has a 1-year low of $27.64 and a 1-year high of $50.49.
Halliburton (NYSE:HAL) last announced its quarterly earnings data on Wednesday, October 19th. The oilfield services company reported $0.01 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.07) by $0.08. The firm earned $3.83 billion during the quarter, compared to analysts’ expectations of $3.87 billion. Halliburton had a positive return on equity of 1.82% and a negative net margin of 33.29%. The company’s quarterly revenue was down 31.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.31 EPS. Equities analysts predict that Halliburton will post ($0.05) earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 28th. Investors of record on Wednesday, December 7th will be given a $0.18 dividend. The ex-dividend date is Monday, December 5th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.46%. Halliburton’s dividend payout ratio (DPR) is presently -10.98%.
In related news, insider Joe D. Rainey sold 1,172 shares of the stock in a transaction on Wednesday, October 19th. The stock was sold at an average price of $50.22, for a total value of $58,857.84. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Joe D. Rainey sold 23,162 shares of the stock in a transaction on Monday, November 21st. The stock was 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 disclosure for this sale can be found here. 0.46% of the stock is owned by corporate insiders.
Several large investors have recently modified their holdings of the company. Johnson Financial Group Inc. increased its stake in shares of Halliburton by 51.3% in the second quarter. Johnson Financial Group Inc. now owns 2,277 shares of the oilfield services company’s stock worth $103,000 after buying an additional 772 shares during the period. Quadrant Capital Group LLC increased its stake in shares of Halliburton by 17.5% in the second quarter. Quadrant Capital Group LLC now owns 2,542 shares of the oilfield services company’s stock worth $104,000 after buying an additional 379 shares during the period. Manchester Capital Management LLC increased its stake in shares of Halliburton by 0.4% in the second quarter. Manchester Capital Management LLC now owns 2,354 shares of the oilfield services company’s stock worth $107,000 after buying an additional 9 shares during the period. IndexIQ Advisors LLC increased its stake in shares of Halliburton by 114.4% in the third quarter. IndexIQ Advisors LLC now owns 2,388 shares of the oilfield services company’s stock worth $107,000 after buying an additional 1,274 shares during the period. Finally, FTB Advisors Inc. increased its stake in shares of Halliburton by 31.5% in the third quarter. FTB Advisors Inc. now owns 2,430 shares of the oilfield services company’s stock worth $116,000 after buying an additional 582 shares during the period. Institutional investors own 80.34% of the company’s stock.
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.