Baxter International Inc. (NYSE:BAX) has received a consensus rating of “Hold” from analysts, with an average price target set at $22.00. This assessment comes from fourteen analysts who have recently evaluated the company’s stock, with two providing a sell rating, ten issuing holds, and two recommending a buy.
Several investment firms have recently adjusted their ratings. On October 31, UBS Group lowered its price target for Baxter from $24.00 to $21.00, maintaining a “neutral” rating. On the same day, Argus changed its rating from “buy” to “hold.” In a report released on December 12, Wells Fargo & Company reduced their target from $21.00 to $19.00 while keeping an “equal weight” rating. Earlier, on December 2, Morgan Stanley decreased its price target from $19.00 to $15.00 and assigned an “underweight” rating. In contrast, Zacks Research upgraded the company’s rating from “strong sell” to “hold” on December 1.
Quarterly Earnings and Dividend Updates
Baxter International reported its quarterly earnings on October 30, 2023. The company announced earnings per share of $0.69, exceeding analysts’ expectations of $0.60 by $0.09. The firm generated $2.84 billion in revenue for the quarter, falling slightly short of the anticipated $2.88 billion. Although the quarterly revenue increased by 5.0% compared to the same period last year, the company reported a negative net margin of 3.09% and a positive return on equity of 17.38%. For its outlook, Baxter has set earnings guidance for Q4 2025 between $0.520 and $0.570 per share, with annual guidance for FY 2025 ranging from $2.350 to $2.400.
In addition to these developments, Baxter has announced a quarterly dividend of $0.01 per share, set to be paid on January 2, 2024, to shareholders of record as of November 28, 2023. This represents an annual dividend yield of 0.2% and brings the total annualized dividend to $0.04. The company’s dividend payout ratio is currently at -6.06%.
Institutional Investor Activity
Recent activity among institutional investors indicates a fluctuating interest in Baxter International. During the third quarter, PVG Asset Management Corp acquired a new position valued at about $401,000. FNY Investment Advisers LLC significantly increased its holdings in Baxter by 1,188.3%, now owning 3,865 shares worth approximately $88,000 after purchasing an additional 3,565 shares. Danske Bank A S made a new investment in Baxter valued at approximately $5.86 million. United Capital Financial Advisors LLC raised its stake by 19.2%, now owning 10,539 shares valued at $240,000. Public Employees Retirement System of Ohio also grew its position by 0.6%, owning 160,033 shares worth $3.64 million.
A significant portion of Baxter International’s shares, approximately 90.19%, are owned by institutional investors and hedge funds.
Baxter International Inc. is a global healthcare company focused on developing, manufacturing, and marketing a diverse range of medical products and pharmaceutical therapies. Its primary business activities encompass renal care, medication delivery, acute therapies, pharmacy automation, surgical care, and biotechnology, all aimed at supporting patient care in various healthcare settings worldwide.
