HP Should I Buy
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Helmerich & Payne Inc. is not a strong buy for a beginner investor with a long-term strategy at this time. The company's financial performance shows significant challenges, including a sharp drop in net income and EPS, and gross margin contraction. Additionally, technical indicators and trading sentiment do not suggest a strong upward trend. While there are some positive catalysts in the form of analyst price target increases and long-term growth potential in the oilfield services sector, the lack of immediate positive momentum and insider/hedge fund selling activity make this stock a hold rather than a buy.
The MACD histogram is negative (-0.175) and contracting, indicating weak momentum. The RSI is neutral at 48.098, and moving averages are converging, showing no clear trend. The stock is trading near its pivot level (34.992), with resistance at 35.94 and support at 34.045.
Analysts have raised price targets recently, with some expecting long-term growth in the oilfield services sector due to geopolitical shifts and tightening supply conditions. The company has maintained its full-year guidance, signaling potential recovery in the second half of 2026.
Hedge funds and insiders are selling significantly, with hedge fund selling up 5577.59% and insider selling up 1701.59%. The company's financial performance has deteriorated, with a sharp drop in net income, EPS, and gross margin. Technical indicators do not show strong upward momentum.
In Q1 2026, revenue increased by 50.16% YoY to $1.017 billion. However, net income dropped by 279.89% YoY to -$97.16 million, and EPS fell by 281.48% YoY to -$0.98. Gross margin also declined significantly by 51.39% YoY to 11.91%.
Analysts have mixed views. Piper Sandler, Susquehanna, and Barclays maintain positive ratings with price targets ranging from $40 to $42, citing long-term growth potential. However, Morgan Stanley has an Underweight rating with a lower price target of $35, reflecting concerns about near-term challenges and softening rig counts.
