Morgan Stanley Downgrades Baxter International (NYSE:BAX) to Underweight

Morgan Stanley lowered shares of Baxter International (NYSE:BAX) from an equal weight rating to an underweight rating in a report published on Monday morning, MarketBeat Ratings reports. Morgan Stanley currently has $30.00 target price on the medical instruments supplier’s stock, down from their previous target price of $39.00.

A number of other equities analysts have also recently weighed in on the company. The Goldman Sachs Group assumed coverage on Baxter International in a report on Thursday, May 30th. They set a neutral rating and a $36.00 price objective on the stock. Citigroup decreased their price objective on Baxter International from $38.00 to $37.00 and set a neutral rating on the stock in a report on Wednesday, July 10th. Evercore ISI decreased their price target on Baxter International from $46.00 to $45.00 and set an outperform rating on the stock in a research note on Tuesday, July 2nd. Finally, TD Cowen cut Baxter International from a buy rating to a hold rating and set a $40.00 price target on the stock. in a research note on Friday, May 10th. One analyst has rated the stock with a sell rating, eight have given a hold rating and four have given a buy rating to the company’s stock. According to MarketBeat.com, the company has an average rating of Hold and a consensus target price of $42.67.

Baxter International Stock Performance

Shares of BAX opened at $35.71 on Monday. The company has a market cap of $18.20 billion, a PE ratio of 6.87, a price-to-earnings-growth ratio of 1.77 and a beta of 0.57. The company has a current ratio of 1.48, a quick ratio of 1.01 and a debt-to-equity ratio of 1.35. Baxter International has a 12-month low of $31.01 and a 12-month high of $50.21. The stock has a 50-day moving average price of $34.11 and a 200-day moving average price of $38.30.

Baxter International (NYSE:BAX) last announced its quarterly earnings data on Thursday, May 2nd. The medical instruments supplier reported $0.65 earnings per share for the quarter, beating analysts’ consensus estimates of $0.61 by $0.04. The company had revenue of $3.59 billion for the quarter, compared to analysts’ expectations of $3.55 billion. Baxter International had a return on equity of 18.47% and a net margin of 17.79%. Baxter International’s revenue for the quarter was down 1.6% compared to the same quarter last year. During the same period last year, the firm posted $0.59 EPS. As a group, equities analysts forecast that Baxter International will post 2.91 earnings per share for the current fiscal year.

Baxter International Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 1st. Stockholders of record on Friday, August 30th will be paid a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 3.25%. Baxter International’s dividend payout ratio (DPR) is presently 22.31%.

Hedge Funds Weigh In On Baxter International

Hedge funds have recently made changes to their positions in the business. Bruce G. Allen Investments LLC purchased a new position in shares of Baxter International during the fourth quarter valued at approximately $36,000. Turtle Creek Wealth Advisors LLC bought a new stake in shares of Baxter International during the fourth quarter valued at approximately $37,000. Hexagon Capital Partners LLC boosted its position in shares of Baxter International by 205.4% during the fourth quarter. Hexagon Capital Partners LLC now owns 953 shares of the medical instruments supplier’s stock valued at $37,000 after purchasing an additional 641 shares in the last quarter. LRI Investments LLC bought a new stake in shares of Baxter International during the first quarter valued at approximately $39,000. Finally, CKW Financial Group bought a new stake in shares of Baxter International during the fourth quarter valued at approximately $43,000. 90.19% of the stock is owned by hedge funds and other institutional investors.

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.