Is Helmerich & Payne Inc. (HP) A Good Investment?

Helmerich & Payne Inc. (NYSE:HP) finished Friday with a subtraction of -$0.14 to close at $34.10, a downside of -0.41 percent. An average of 1,058,240 shares of common stock have been traded in the last five days. There was a gain of $1.34 in the past week, and it reached a new high 24 times over the past 12 months. The last 20 days have seen an average of 1,297,585 shares traded, while the 50-day average volume stands at 1,125,974.

HP stock has increased by 27.38% in the last month. The company shares reached their 1-month lowest point of $25.61 on 09/23/21. With the stock rallying to its 52-week high on 06/16/21, shares of the company touched a low of $13.70 and a high of $36.26 in 52 weeks. It has reached a new high 15 times so far this year and achieved 47.24% or $10.94 in price. In spite of this, the price is down -5.96% from the 52-week high.


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Insider Transactions

4 days have passed since Helmerich & Payne Inc. (HP) last reported insider trading activity. LINDSAY JOHN W, who is President and CEO, most recently acquired $9,000 shares at $35.00 per share on Oct 19. In this transaction, the insider spent $315,000. Chief Innovation Officer, sub, Benson Todd Willard, disposed of 5,000 shares at a price of $32.86 on Oct 15. The insider now owns more than $164,300 worth of shares. Prior to that, Chief Innovation Officer, sub Benson Todd Willard went on to Sale 5,000 shares at $32.50 each on Jun 02. An amount of $162,500 was transacted.

Valuation Metrics

Helmerich & Payne Inc. (HP) has a trailing price-to-earnings (P/E) ratio of 18.90 for the broader industry and 20.20 for the sector. In the last five years, Helmerich & Payne Inc.’s PE ratio has ranged between 97.74 and 10.29. The stock’s beta is 2.21. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.33, the price-to-book (PB) ratio at 1.22.

Helmerich & Payne Inc. pays a $1.00 dividend per share annually. It offers a dividend yield of 2.93%. The company’s most recent quarterly dividend payment was $0.25 a share, without any change from last year. Its dividend has been increased for the last 1 year with the latest decrease dividend $0.46 reported on Friday June 5 2020.Dividends have grown by -31.43% each year over the last three years.

The quick ratio of Helmerich & Payne Inc. for the three months ended June 29 was 3.40, and the current ratio was 3.70, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.16 and a total debt to equity ratio of 0.16 for the quarter ending June 29. Helmerich & Payne Inc.’s EBITDA margin for the year ending June 29 is 22.72%, while its operating margin for the same period stands at -39.20%. Its gross profit as reported stood at $583.36 million compared to revenue of $1.77 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Helmerich & Payne Inc.’s return on assets was -6.80%. For the broader industry, ROE averaged 12.45 over the past year.

Earnings Surprise

For the three-month period that ended June 29, Helmerich & Payne Inc. had $187.26 million in cash and short-term investments compared to $481.0 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$55.56 million in the quarter, while revenues were grew 17.93%. The analyst consensus anticipated Helmerich & Payne Inc.’s latest quarter earnings to come in at -$0.57 per share, but it turned out to be -$0.57, a 0.00% surprise. For the quarter, EBITDA amounted to $27.2 million. Shareholders own equity worth $107.9 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Helmerich & Payne Inc. (HP) price momentum. RSI 9-day as of the close on 22 October was 75.00%, suggesting the stock is Overbought, with historical volatility in this time frame at 25.06%.

As of today, HP’s price is $34.44 +4.09% or $1.34 from its 5-day moving average. HP is currently trading +26.77% higher than its 20-day SMA and +5.41% higher than its 100-day SMA. However, the stock’s current price level is +20.49% above the SMA50 and +31.76% above the SMA200.

The stochastic %K and %D were 89.14% and 93.44%, respectively, and the average true range (ATR) was 1.17. With the 14-day stochastic at 82.03% and the average true range at 1.19, the RSI (14) stands at 72.72%. The stock has reached 1.13 on the 9-day MACD Oscillator while the 14-day reading was at 2.03.

Analyst Ratings

The consensus rating for Helmerich & Payne Inc. (HP) among analysts is Hold. According to current brokerage recommendations, 2 brokerage firms advise that investors sell HP, while 8 suggest investors hold. There are 2 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 7 others rate it as a “buy”.

What is HP’s price target for the next 12 months?

Analysts predict a range of price targets between $15.00 and $42.00, with a median target of $30.00. Taking a look at these predictions, the average price target given by analysts for Helmerich & Payne Inc. (HP) stock is $30.76.

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