Dodge & Cox Reduces $310M in Baker Hughes Company ($BKR)
Dodge & Cox reduces its position in Baker Hughes by 4.89 million shares.
Key Points
- Dodge & Cox cut its Baker Hughes position by 4.89 million shares, a reduction of about 12%, leaving it with 35.87 million shares valued at $2.28 billion.
- Baker Hughes, trading near $63.48, has a market cap of approximately $63.1 billion and a P/E ratio of 20.32.
- Baker Hughes offers a dividend yield of 1.45% with a payout ratio of 29.39%, serving the energy and industrial sectors.
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Dodge & Cox recently reduced its holdings in Baker Hughes Company (NasdaqGS: BKR), according to its latest 13F filing with the SEC. The fund cut its stake by approximately 11.99%, selling 4,887,880 shares. This leaves Dodge & Cox with 35,871,558 shares valued at about $2.28 billion, based on the filing's reporting period.
What Changed in Dodge & Cox's Baker Hughes Position
Dodge & Cox's decision to trim its position in Baker Hughes saw it reduce its holdings from 40,759,438 shares to 35,871,558 shares. This represents a decrease of about 4.89 million shares, or nearly 12%, reflecting a strategic adjustment in the fund's investment portfolio.
Baker Hughes Company Stock Down 0.1%
Shares of Baker Hughes (NasdaqGS: BKR) are trading near $63.48. The company boasts a market capitalization of approximately $63.1 billion and carries a P/E ratio of 20.32. Baker Hughes' stock has traded between a 52-week low of $37.38 and a high of $70.41. It also maintains a 50-day moving average of $64.29 and a 200-day moving average of $54.75. The company's financial health is supported by a current ratio of 2.13 and a quick ratio of 1.69, with a debt-to-equity ratio of 82.94.
Recent Earnings
Baker Hughes reported revenue of $27.89 billion, with a modest growth rate of 2.5%. The company achieved an EPS of $3.13, resulting in a net margin of 11.17% and a return on equity of 17.18%. The next earnings report is anticipated on April 23, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
10 analysts raised price targets.
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EPS & revenue
EPS beat estimates by 16.2%. Revenue beat estimates by 3.0%.
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Profit surprise
EBITDA beat by 11 percent. Operating income beat by 8 percent.
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Pre-earnings setup
Bar was high, analysts already very bullish.
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Analyst signal
1 downgrade, 10 target raises.
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Earnings quality
Operating margin up 0.6 points. Positive free cash flow.
Earnings Call Summary
Baker Hughes delivered a strong first quarter with adjusted earnings per share of $0.58, beating expectations of $0.50. Energy infrastructure orders hit a record $4.9 billion, driven by data center power demand and liquefied natural gas projects. The Middle East conflict caused some disruption but strong performance elsewhere, particularly in power systems and gas compression, more than offset those challenges.
Guidance Baker Hughes reaffirmed its full year revenue and earnings targets. They expect about $6.5 billion in second quarter revenue and $1.13 billion in adjusted EBITDA. Management assumes the Middle East conflict continues through June, then gradually improves in the second half of the year.
Good report. The company beat and showed some forward improvement, with a few meaningful caveats.
Dividend
Baker Hughes provides an annual dividend rate of $0.92, yielding 1.45%. The dividend payout ratio is a manageable 29.39%, making it an attractive option for income-focused investors.
About Baker Hughes
Baker Hughes Company, headquartered in Houston, Texas, offers a wide range of technologies and services for the energy and industrial sectors. The company operates in the Oilfield Services & Equipment and Industrial & Energy Technology segments, providing solutions for oilfield operations, drilling, and energy technology. Led by CEO Lorenzo Simonelli, Baker Hughes employs around 53,000 people worldwide.
Bottom Line
The reduction in Dodge & Cox's stake in Baker Hughes is a notable move in the energy sector. Investors often watch such filings to gauge institutional confidence and strategy. It's important to remember that 13F filings are historical snapshots and may not reflect current positions.
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