Zacks Investment Research Upgrades Helmerich & Payne (HP) to “Buy”

Zacks Investment Research upgraded shares of Helmerich & Payne (NYSE:HP) from a hold rating to a buy rating in a research note published on Tuesday morning. The firm currently has $81.00 price objective on the oil and gas company’s stock.

According to Zacks, “Helmerich & Payne is one of the leading drilling contractors, having the youngest and most efficient drilling fleet. Healthier drilling activity in U.S. Land segment amid higher utilizations and dayrates should drive the company’s near-term earnings and cash flows. Technologically-advanced FlexRigs help the company maintain relatively strong daily-rate margins even during times of market uncertainty. The company's buyout of two rig technologies companies namely MagVar and Motive Drilling Technologies, which focus on precise drilling and real time monitoring/evaluation also bodes well, helping the company to drill wells efficiently and accurately. As such, HP sports a 'Buy' rating.”

Several other research analysts have also issued reports on the stock. Royal Bank of Canada upgraded shares of Helmerich & Payne from a sector perform rating to an outperform rating and set a $90.00 price target for the company in a research note on Thursday, September 20th. JPMorgan Chase & Co. upgraded shares of Helmerich & Payne from an underweight rating to a neutral rating and increased their price target for the stock from $49.00 to $58.00 in a research note on Friday, September 14th. B. Riley upgraded shares of Helmerich & Payne from a neutral rating to a buy rating and increased their price target for the stock from $68.00 to $83.00 in a research note on Monday, September 24th. Stephens upgraded shares of Helmerich & Payne from an equal weight rating to an overweight rating and set a $67.00 price target for the company in a research note on Monday, July 30th. Finally, ValuEngine upgraded shares of Helmerich & Payne from a hold rating to a buy rating in a research note on Monday, July 30th. Three investment analysts have rated the stock with a sell rating, seven have given a hold rating and thirteen have assigned a buy rating to the company. The company has a consensus rating of Hold and an average target price of $72.29.

Shares of Helmerich & Payne stock opened at $69.41 on Tuesday. The company has a debt-to-equity ratio of 0.11, a current ratio of 2.97 and a quick ratio of 2.57. The stock has a market capitalization of $7.49 billion, a P/E ratio of -54.65 and a beta of 1.36. Helmerich & Payne has a 1 year low of $50.64 and a 1 year high of $75.02.

Helmerich & Payne (NYSE:HP) last issued its quarterly earnings results on Wednesday, July 25th. The oil and gas company reported ($0.01) earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.03 by ($0.04). The business had revenue of $648.87 million during the quarter, compared to the consensus estimate of $617.06 million. Helmerich & Payne had a negative return on equity of 0.37% and a net margin of 19.70%. The firm’s revenue was up 30.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.25) earnings per share. Equities research analysts expect that Helmerich & Payne will post 0.04 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 3rd. Shareholders of record on Monday, November 12th will be paid a dividend of $0.71 per share. The ex-dividend date is Thursday, November 8th. This represents a $2.84 dividend on an annualized basis and a yield of 4.09%. Helmerich & Payne’s dividend payout ratio is currently -223.62%.

In other Helmerich & Payne news, CEO John W. Lindsay sold 30,000 shares of the firm’s stock in a transaction dated Monday, October 1st. The shares were sold at an average price of $70.00, for a total transaction of $2,100,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Chapman Paula Marshall sold 11,309 shares of the firm’s stock in a transaction dated Friday, September 14th. The shares were sold at an average price of $65.13, for a total transaction of $736,555.17. Following the sale, the director now owns 14,874 shares of the company’s stock, valued at $968,743.62. The disclosure for this sale can be found here. 4.10% of the stock is currently owned by company insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in HP. Janus Henderson Group PLC boosted its holdings in shares of Helmerich & Payne by 692.2% during the 2nd quarter. Janus Henderson Group PLC now owns 687,928 shares of the oil and gas company’s stock valued at $43,862,000 after acquiring an additional 601,088 shares during the last quarter. Los Angeles Capital Management & Equity Research Inc. purchased a new stake in shares of Helmerich & Payne during the 2nd quarter valued at about $21,926,000. Pinnacle Associates Ltd. boosted its holdings in shares of Helmerich & Payne by 163.1% during the 2nd quarter. Pinnacle Associates Ltd. now owns 505,777 shares of the oil and gas company’s stock valued at $32,248,000 after acquiring an additional 313,569 shares during the last quarter. Bank of Montreal Can purchased a new stake in shares of Helmerich & Payne during the 2nd quarter valued at about $18,061,000. Finally, Canada Pension Plan Investment Board boosted its holdings in shares of Helmerich & Payne by 2,144,000.0% during the 2nd quarter. Canada Pension Plan Investment Board now owns 214,410 shares of the oil and gas company’s stock valued at $13,671,000 after acquiring an additional 214,400 shares during the last quarter. 92.10% of the stock is currently owned by hedge funds and other institutional investors.

About Helmerich & Payne

Helmerich & Payne, Inc primarily engages in drilling oil and gas wells for exploration and production companies. The company operates through U.S. Land, Offshore, and International Land segments. The U.S. Land segment drills primarily in Colorado, Louisiana, Ohio, Oklahoma, New Mexico, North Dakota, Pennsylvania, Texas, Utah, West Virginia, and Wyoming.

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