HP Should I Buy
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Helmerich and Payne Inc (HP) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the stock has some positive momentum and bullish technical indicators, the company's financial performance shows significant weaknesses, including a sharp decline in net income and EPS. Additionally, hedge funds and insiders are heavily selling, which raises concerns about confidence in the stock. Analysts have mixed views, with some upgrades but also caution regarding near-term challenges. The options data indicates a lack of strong bullish sentiment. Given these factors, it is better to hold off on investing in HP for now.
The technical indicators show a bullish trend with the MACD histogram above 0 and positively contracting, RSI at 62.594 in the neutral zone, and bullish moving averages (SMA_5 > SMA_20 > SMA_200). The stock is trading above its pivot level of 35.866, with resistance at 37.53 and support at 34.202. However, the pre-market change of -0.91% suggests some short-term weakness.
Analysts have upgraded the stock recently, with Evercore ISI raising the price target to $43 and citing a positive turn in U.S. land services. The oil market's focus on resilience and anticipated growth in rig count and capex are favorable for the company.
Hedge funds and insiders are selling heavily, with hedge fund selling up 5577.59% and insider selling up 1701.59%. Financial performance in Q1 2026 shows significant declines in net income (-279.89% YoY), EPS (-281.48% YoY), and gross margin (-51.39% YoY). Near-term challenges include weaker rig counts and international reactivation expenses.
In Q1 2026, revenue increased by 50.16% YoY to $1.017 billion, but net income dropped to -$97.16 million (-279.89% YoY), and EPS fell to -0.98 (-281.48% YoY). Gross margin also declined significantly to 11.91 (-51.39% YoY), indicating profitability challenges.
Analyst sentiment is mixed. Evercore ISI upgraded the stock to Outperform with a price target of $43, citing resilience in the oil market and growth in U.S. land services. However, other analysts like Citi and TD Cowen maintain Neutral or Hold ratings, citing near-term challenges such as weaker rig counts and international reactivation expenses. Price targets range from $28 to $43, with a general upward trend in recent months.
