Helmerich & Payne (NYSE:HP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Monday.
According to Zacks, “With crude prices oscillating between $45 and $50 a barrel for most of 2017 – down 55% from mid-2014 levels – the top energy companies cut spending (particularly on the costly drilling projects) on the back of lower profit margins. This, in turn, meant less work for the beleaguered drillers (like Helmerich & Payne) as exploration for new oil and gas projects almost came to a standstill. Moreover, with large, multinational energy firms looking to reign in their skyrocketing capital expenses, the drilling space witnessed intense competition, as multiple firms chased a single contract. This excess capacity, in turn, led to significantly lower utilization/dayrates. As such we do not see any near-term improvement for the likes of Helmerich & Payne. In fact, the stock is a risky bet that is best avoided at the moment.”
Several other research firms have also issued reports on HP. B. Riley reiterated a “neutral” rating on shares of Helmerich & Payne in a report on Wednesday, November 1st. Stephens began coverage on shares of Helmerich & Payne in a report on Tuesday, January 9th. They set an “equal weight” rating and a $67.00 target price for the company. BMO Capital Markets reiterated a “sell” rating on shares of Helmerich & Payne in a report on Friday, October 13th. SunTrust Banks reiterated a “sell” rating and set a $37.00 target price (down from $66.00) on shares of Helmerich & Payne in a report on Tuesday, October 3rd. Finally, Jefferies Group set a $58.00 target price on shares of Helmerich & Payne and gave the company a “hold” rating in a report on Saturday, November 18th. Eight investment analysts have rated the stock with a sell rating, sixteen have given a hold rating and four have issued a buy rating to the company’s stock. Helmerich & Payne currently has a consensus rating of “Hold” and a consensus price target of $55.04.
Helmerich & Payne (NYSE:HP) last issued its quarterly earnings data on Thursday, November 16th. The oil and gas company reported ($0.14) EPS for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.19) by $0.05. Helmerich & Payne had a negative net margin of 7.16% and a negative return on equity of 2.96%. The business had revenue of $532.30 million during the quarter, compared to analyst estimates of $493.78 million. During the same period last year, the business posted ($0.33) earnings per share. Helmerich & Payne’s quarterly revenue was up 60.5% compared to the same quarter last year. equities analysts anticipate that Helmerich & Payne will post -0.38 EPS for the current fiscal year.
In related news, Director Chapman Paula Marshall sold 2,555 shares of the firm’s stock in a transaction that occurred on Friday, December 15th. The shares were sold at an average price of $57.80, for a total transaction of $147,679.00. Following the completion of the sale, the director now owns 12,525 shares of the company’s stock, valued at $723,945. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 4.23% of the stock is owned by company insiders.
Several institutional investors and hedge funds have recently made changes to their positions in the stock. Meridian Wealth Management LLC bought a new stake in Helmerich & Payne in the 3rd quarter worth approximately $217,000. Honkamp Krueger Financial Services Inc. bought a new stake in Helmerich & Payne in the 3rd quarter worth approximately $286,000. KLCM Advisors Inc. bought a new stake in Helmerich & Payne in the 2nd quarter worth approximately $489,000. California State Teachers Retirement System grew its position in Helmerich & Payne by 9.5% in the 2nd quarter. California State Teachers Retirement System now owns 218,326 shares of the oil and gas company’s stock worth $11,864,000 after purchasing an additional 18,978 shares during the period. Finally, Conning Inc. bought a new stake in Helmerich & Payne in the 3rd quarter worth approximately $493,000.
About Helmerich & Payne
Helmerich & Payne, Inc is engaged in contract drilling of oil and gas wells for others. The Company operates in the contract drilling industry. The Company’s contract drilling business consists of three segments: U.S. Land, Offshore and International Land. The Company is also engaged in the ownership, development and operation of commercial real estate and the research and development of rotary steerable technology.
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