HOUSTON—Nancy Buese, the Executive Vice President and Chief Financial Officer of Baker Hughes Co (NASDAQ:BKR), recently sold 10,000 shares of the company's Class A common stock. The shares were sold at a weighted average price of $40.69, amounting to a total transaction value of $406,900. Following this sale, Buese holds 26,817 shares indirectly through a trust and 33,979 shares directly.
The sale was executed as part of a pre-arranged trading plan under Rule 10b5-1, which Buese adopted on April 26, 2024. The transaction involved multiple trades with prices ranging from $40.49 to $40.88 per share.
In other recent news, Baker Hughes reported a record quarterly EBITDA in its Third Quarter 2024 Earnings Call, marking the third consecutive quarter of 20% year-on-year EBITDA growth and the highest EBITDA margins since 2017. However, Q3 revenue fell slightly below expectations due to project delays, with a revenue miss of just over $200 million related to GTE timing. Despite this, recovery is anticipated in Q4 and Q1.
On a different note, Baker Hughes secured significant contracts with Brazilian state-run oil company Petrobras to supply flexible pipe systems for Brazil's pre-salt oilfields. The production of these systems will take place in Brazil, contributing to local manufacturing and strengthening the Brazilian economy and energy supply chain.
In the political sphere, analysts predict a bullish response for equity markets if former President Donald Trump wins the U.S. presidential election, citing potential tax cuts and deregulation. However, a victory for Vice President Kamala Harris could influence different sectors, such as homebuilders and green energy firms. These are recent developments in the company's performance and outlook.
InvestingPro Insights
As Baker Hughes Co (NASDAQ:BKR) experiences insider selling activity, it's worth examining the company's current financial position and market performance. According to InvestingPro data, Baker Hughes boasts a substantial market capitalization of $42.29 billion, reflecting its significant presence in the oil and gas equipment and services sector.
The company's stock has shown impressive momentum recently, with InvestingPro Tips highlighting a strong return over the last month and a significant 25.52% price total return over the past three months. This positive trend aligns with the stock trading near its 52-week high, currently at 99.75% of that peak.
From a valuation perspective, Baker Hughes is trading at a P/E ratio of 16.84, which is considered low relative to its near-term earnings growth. This suggests potential undervaluation, especially when considering the company's PEG ratio of 0.51 for the last twelve months as of Q3 2024, indicating that the stock might be attractively priced relative to its growth prospects.
It's noteworthy that Baker Hughes has maintained dividend payments for 38 consecutive years, demonstrating a commitment to shareholder returns. The company currently offers a dividend yield of 1.97%, with a 5% dividend growth rate over the last twelve months as of Q3 2024.
For investors seeking more comprehensive analysis, InvestingPro offers 16 additional tips for Baker Hughes, providing a deeper understanding of the company's financial health and market position.
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