RBC Capital Thinks Helmerich & Payne’s Stock is Going to Recover

By Ryan Adsit

RBC Capital analyst Kurt Hallead maintained a Buy rating on Helmerich & Payne (HPResearch Report) on April 3 and set a price target of $24.00. The company’s shares closed last Friday at $15.46, close to its 52-week low of $12.40.

According to TipRanks.com, Hallead is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -20.2% and a 26.2% success rate. Hallead covers the Basic Materials sector, focusing on stocks such as Independence Contract Drilling, Diamond Offshore Drilling, and Oceaneering International.

Helmerich & Payne has an analyst consensus of Moderate Buy, with a price target consensus of $30.34, implying a 76.2% upside from current levels. In a report issued on March 20, Credit Suisse also upgraded the stock to Buy with a $20.00 price target.

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Based on Helmerich & Payne’s latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $615 million and net profit of $30.61 million. In comparison, last year the company earned revenue of $741 million and had a net profit of $18.96 million.

Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of HP in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Helmerich & Payne, Inc. engages in contract drilling of oil and gas well. It operates through the following segments: U.S. Land, Offshore, International Land and Helmerich and Payne Technologies. The U.S. Land segment operates its drilling business primarily in Oklahoma, California, Texas, Wyoming, Colorado, Louisiana, Mississippi, Pennsylvania, Ohio, Utah, New Mexico, Montana, North Dakota, West Virginia and Nevada. The Offshore segment conducts its business in the Gulf of Mexico and Equatorial Guinea. The International Land segment operates in six international locations including Ecuador, Colombia, Argentina, Bahrain, United Arab Emirates, and Mozambique. The Helmerich and Payne Technologies segment focuses on developing, promoting and commercializing technologies designed to improve the efficiency and accuracy of drilling operations, as well as wellbore quality and placement. The company was founded by Walter Helmerich Hugo II and William Payne in 1920 and is headquartered in Tulsa, OK.