Helmerich & Payne Inc. (HP) shares are trading at lower $23.75 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $20.07.
To add more color to this target, the company’s high over the last year is $47.33 and the low is $12.40. Over the last 52 weeks, HP is down -41.30% while the S&P 500 is up 15.29%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, HP reported a profit of $42.94 million. Helmerich & Payne Inc. also saw revenues increase to $208.27 million. In addition, HP has free cash flow of $398.09 million as of 09-2020. The company’s EBITDA came in at $34.62 million which compares well with its peers.
HP booked profit margins of -28.00%, its Return on Equity (ROE) is -14.10%, and its Return on Assets is -9.60%. All told, it is clear that, HP needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. HP has a short ratio of 3.30 and outstanding shares of 107.48M.
HP has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.48 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -4.61. Helmerich & Payne Inc. HP also noted assets of $4.83 billion at the end of the last quarter. Investors should also keep an eye on sector updates as HP has historically followed its peers on positive news.
All told, Helmerich & Payne Inc. HP has strung together solid data and demonstrated underlying fundamentals. At its current valuation, HP represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Helmerich & Payne Inc. HP is now commanding a market cap of 2.60B and a float of 104.21M. HP is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of HP stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in HP, either long or short, and we have not been compensated for this article.