Helmerich & Payne Inc. (NYSE: HP): Stock That Needs Special Handling


    BlackRock Fund Advisors recently announced the acquisition of new stake in Helmerich & Payne Inc. (NYSE:HP). The institutional investor has increased its shareholding in the Energy company by 86.89% to 14.47 million shares with purchase of 6.73 million shares. This fresh investment now brings its stake to 13.46% valued currently at $257.94 million. In addition, Goldman Sachs & Co. LLC (Private.. raised its holdings by 1.61 million to 2.4 million shares. And Two Sigma Advisers LP has lifted its position by 65.76% or 0.47 million shares – to 1.2 million shares.

    With over 1.37 million Helmerich & Payne Inc. (HP) shares trading Tuesday and a closing price of $16.75 on the day, the dollar volume was approximately $22.87 million. The shares have shown a negative weekly performance of -0.42% and its price on 09/01/20 gained nearly 1.64%. Currently, there are 107.44M common shares owned by the public and among those 104.10M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 25 analysts who have offered their price forecasts for HP have a consensus price objective of $18.86. The analysts have set the share’s price value over the next 12 months at a high of $27.00 and a low of $8.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Helmerich & Payne Inc. stock is 2.50 for the next 12 months. The average price target is 11.38% above its last price level and an upside to the estimated low will see the stock lose -109.38% over that period. But an upside of 37.96% will see the stock hit the forecast high price target while mean target price for the stock is $20.00.

    Insiders at the company have transacted a total of 61 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 33 of these insider trades were purchases, accounting for 297,475 shares. Insider sales of the common stock occurred on 28 occasions, with total insider shares sold totaling 77,942 shares.

    The top 3 mutual fund holders in Helmerich & Payne Inc. are iShares Core S&P Small Cap ETF, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. iShares Core S&P Small Cap ETF owns 6.7 million shares of the company’s stock, all valued at over $119.55 million. The company bought an additional 42144.0 shares recently to bring their total holdings to about 6.24% of the shares outstanding. Vanguard Total Stock Market Index sold 2094.0 shares to see its total holdings shrink to 2.91 million shares valued at over $51.97 million and representing 2.71% of the shares outstanding. Vanguard Small Cap Index Fund sold 18523.0 shares to bring its total holdings to over 2.53 million shares at a value of $45.1 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.35% of the shares outstanding.

    Shares of Helmerich & Payne Inc. (NYSE: HP) opened at $16.58, up $0.1 from a prior closing price of $16.48. However, the script later closed the day at $16.75, up 1.64%. The company’s stock has a 5-day price change of -0.42% and -26.31% over the past three months. HP shares are trading -63.13% year to date (YTD), with the 12-month market performance down to -53.93% lower. It has a 12-month low price of $12.40 and touched a high of $47.45 over the same period. Currently, 1.37 million shares have been traded, compared to an average intraday trading volume of 2.05 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -7.04%, -10.11%, and -39.40% respectively.

    Institutional ownership of Helmerich & Payne Inc. (NYSE: HP) shares accounts for 89.90% of the company’s 107.44M shares outstanding. Mutual fund holders own 41.23%, while other institutional holders and individual stakeholders account for 47.53% and 3.78% respectively.

    It has a market capitalization of $1.76B and a beta (3y monthly) value of 2.08. The earnings-per-share (ttm) stands at -$3.66. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.17% over the week and 4.68% over the month.

    Analysts forecast that Helmerich & Payne Inc. (HP) will achieve an EPS of -$0.79 for the current quarter, -$0.75 for the next quarter and -$2.6 for 2021. The lowest estimate earnings-per-share for the quarter is -$1.18 while analysts give the company a high EPS estimate of -$0.62. Comparatively, EPS for the current quarter was $0.38 a year ago. Earnings per share for the fiscal year are expected to decrease by -165.60%, and -34.00% over the next financial year. EPS should grow at an annualized rate of -7.76% over the next five years, compared to -15.40% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 25 brokerage firm advisors rate Helmerich & Payne Inc. (HP) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 9 Wall Street analysts polled rate the stock as a buy, while 8 of the 25 advise that investors “hold,” and 4 rated it as a “Sell.”

    Looking at the support for the HP, a number of firms have released research notes about the stock. B. Riley FBR stated their Sell rating for the stock in a research note on August 24, 2020, with the firm’s price target at $11.50. Cowen coverage for the Helmerich & Payne Inc. (HP) stock in a research note released on August 04, 2020 offered a Market Perform rating with a price target of $8. Barclays was of a view on August 03, 2020 that the stock is Underweight, while Morgan Stanley gave the stock Equal-Weight rating on July 08, 2020, issuing a price target of $20. Piper Sandler on their part issued Overweight rating on May 28, 2020.


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