How to buy Baker Hughes shares | $13.53
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Baker Hughes Company is an oil & gas equipment & services business with stocks listed in the US. Baker Hughes shares (BKR) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was US$13.53 – a decrease of 10.93% over the previous week.
How to buy shares in Baker Hughes
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Baker Hughes. Find the share by name or ticker symbol: BKR. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Baker Hughes reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$13.53, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Baker Hughes, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Baker Hughes. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Baker Hughes key stats
- Compare share trading platforms
- Is Baker Hughes stock a buy or sell?
- Baker Hughes performance over time
- Can I short Baker Hughes shares?
- Are Baker Hughes shares over-valued?
- Baker Hughes's financials
- How volatile are Baker Hughes shares?
- Does Baker Hughes pay a dividend?
- Other common questions
How has coronavirus impacted Baker Hughes's share price?
Since the stock market crash in March caused by coronavirus, Baker Hughes's share price has had significant negative movement.
Its last market close was US$13.53, which is 34.10% down on its pre-crash value of US$20.53 and 48.36% up on the lowest point reached during the March crash when the shares fell as low as US$9.12.
If you had bought US$1,000 worth of Baker Hughes shares at the start of February 2020, those shares would have been worth US$433.75 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth US$629.01.
Baker Hughes share priceUse our graph to track the performance of BKR stocks over time.
Baker Hughes shares at a glance
|Latest market close||USD$13.53|
|52-week range||USD$9.12 - USD$25.99|
|50-day moving average||USD$15.5003|
|200-day moving average||USD$14.6412|
|Dividend yield||USD$0.72 (4.8%)|
|Earnings per share (TTM)||USD$0.2234|
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Is it a good time to buy Baker Hughes stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Baker Hughes price performance over time
|1 week (2020-09-14)||-7.52%|
|1 month (2020-08-24)||-14.96%|
|3 months (2020-06-20)||N/A|
|6 months (2020-03-23)||45.02%|
|1 year (2019-09-20)||-42.65%|
|2 years (2018-09-21)||-58.88%|
|3 years (2017-09-21)||-63.01%|
|5 years (2015-09-21)||-75.28%|
Is Baker Hughes under- or over-valued?
Valuing Baker Hughes stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Baker Hughes's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Baker Hughes's P/E ratio
Baker Hughes's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 74x. In other words, Baker Hughes shares trade at around 74x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Baker Hughes's PEG ratio
Baker Hughes's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.6903. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Baker Hughes's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Baker Hughes's EBITDA
Baker Hughes's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$2.6 billion (£2 billion).
The EBITDA is a measure of a Baker Hughes's overall financial performance and is widely used to measure a its profitability.
Baker Hughes financials
|Revenue TTM||US$22.4 billion|
|Operating margin TTM||5.22%|
|Gross profit TTM||US$4.4 billion|
|Return on assets TTM||1.62%|
|Return on equity TTM||-62.06%|
|Market capitalisation||US$15.7 billion|
TTM: trailing 12 months
Shorting Baker Hughes shares
There are currently 35.7 million Baker Hughes shares held short by investors – that's known as Baker Hughes's "short interest". This figure is 39.1% up from 25.7 million last month.
There are a few different ways that this level of interest in shorting Baker Hughes shares can be evaluated.
Baker Hughes's "short interest ratio" (SIR)
Baker Hughes's "short interest ratio" (SIR) is the quantity of Baker Hughes shares currently shorted divided by the average quantity of Baker Hughes shares traded daily (recently around 5.7 million). Baker Hughes's SIR currently stands at 6.29. In other words for every 100,000 Baker Hughes shares traded daily on the market, roughly 6290 shares are currently held short.
However Baker Hughes's short interest can also be evaluated against the total number of Baker Hughes shares, or, against the total number of tradable Baker Hughes shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Baker Hughes's short interest could be expressed as 0.03% of the outstanding shares (for every 100,000 Baker Hughes shares in existence, roughly 30 shares are currently held short) or 0.0714% of the tradable shares (for every 100,000 tradable Baker Hughes shares, roughly 71 shares are currently held short).
A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against Baker Hughes.
Find out more about how you can short Baker Hughes stock.
Baker Hughes share dividends
Dividend payout ratio: 313.04% of net profits
Recently Baker Hughes has paid out, on average, around 313.04% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 4.8% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Baker Hughes shareholders could enjoy a 4.8% return on their shares, in the form of dividend payments. In Baker Hughes's case, that would currently equate to about $0.72 per share.
Baker Hughes's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
Baker Hughes's most recent dividend payout was on 20 August 2020. The latest dividend was paid out to all shareholders who bought their shares by 6 August 2020 (the "ex-dividend date").
Baker Hughes share price volatility
Over the last 12 months, Baker Hughes's shares have ranged in value from as little as US$9.12 up to US$25.99. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Baker Hughes's is 1.655. This would suggest that Baker Hughes's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
Baker Hughes overview
Baker Hughes Company provides a portfolio of technologies and services worldwide. The company operates through four segments: Oilfield Services (OFS), Oilfield Equipment (OFE), Turbomachinery & Process Solutions (TPS), and Digital Solutions (DS). The OFS segment offers drilling, wireline, evaluation, completion, production, and intervention services; and drilling and completions fluids, completions tools and systems, wellbore intervention tools and services, artificial lift systems, pressure pumping systems, and oilfield and industrial chemicals for oil and natural gas, and oilfield service companies. The OFE segment designs and manufactures products and services, including pressure control equipment and services, subsea production systems and services, drilling equipment, and flexible pipeline systems; and onshore and offshore drilling and production systems, and equipment for floating production platforms, as well as provides services related to onshore and offshore drilling activities. The TPS segment provides equipment and related services for mechanical-drive, compression, and power-generation applications across the oil and gas industry. Its product portfolio includes drivers, compressors, and turnkey solutions; and pumps, valves, and compressed natural gas and small-scale liquefied natural gas solutions. This segment serves upstream, midstream, onshore and offshore, and industrial, as well as engineering, procurement, and construction companies. The DS segment provides sensor-based measurement, non-destructive testing and inspection, turbine, generator and plant controls, and condition monitoring, as well as pipeline integrity solutions for a range of industries, including oil and gas, power generation, aerospace, metals, and transportation. It serves through direct and indirect channels. The company was formerly known as Baker Hughes, a GE company and changed its name to Baker Hughes Company in October 2019. Baker Hughes Company is based in Houston, Texas.
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