S&P 500 may face selling pressure as systematic funds reach full exposure
In a challenging market environment, Helmerich & Payne (NYSE:HP)’s stock has touched a 52-week low, with shares falling to $23.69. The oil and gas drilling company has faced significant headwinds over the past year, reflected in a substantial 1-year change with a decrease of 44.64% in its stock value. Investors are closely monitoring the company’s performance as it navigates through the volatile energy sector, which has been impacted by fluctuating oil prices and shifting demand patterns. The current low represents a critical juncture for Helmerich & Payne as it strives to adapt and strengthen its market position amidst these testing times.
In other recent news, Helmerich & Payne reported first-quarter revenue of $677.3 million, missing Wall Street’s consensus estimate of $691.49 million. The company’s earnings per share (EPS) for the quarter ended December 31, 2024, were $0.71, slightly above analyst predictions. Despite this, the revenue miss and concerns over international operations overshadowed the positive EPS result. S&P Global Ratings downgraded Helmerich & Payne from ’BBB+’ to ’BBB’, citing weaker international operations and potential U.S. market headwinds. CFRA also downgraded the company’s stock from Buy to Sell, reducing the price target from $39.00 to $25.00, due to concerns about the land drilling market and ongoing rig suspensions in Saudi Arabia. On a more positive note, Citi upgraded Helmerich & Payne to Buy, raising the price target to $40.00, driven by expectations of a significant free cash flow yield following the KCA transaction. The acquisition of KCA Deutag has expanded Helmerich & Payne’s rig fleet by nearly 45%, providing increased scale and diversification, but challenges remain due to the suspension of rigs by Saudi Aramco (TADAWUL:2222). The company’s future results will heavily depend on its ability to improve international utilization and operating margins.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.