Zacks Investment Research upgraded shares of Flowserve (NYSE:FLS) from a sell rating to a hold rating in a research note issued to investors on Wednesday morning.
According to Zacks, “Flowserve’s leading position in the flow control industry, a resilient aftermarket business, diligent restructuring plans and geographical diversity are expected to lend momentum to its growth. Flowserve is set to benefit from rising short-cycle investments as client spending improves, driven by improved macroeconomic environment, stable oil prices, improving regulatory conditions in the U.S. and the recent tax reforms. In addition, increased project bidding activities in the energy markets signal brighter days, going forward. However, Flowserve has been suffering from precipitous top-line decline in recent quarters. Also, pricing pressure has proved to be a major drag on the top-line performance. In addition, loss of sales leverage and related under-absorption has been hurting the company’s profitability. The company’s shares have underperformed the industry over the past year.”
FLS has been the subject of a number of other reports. Robert W. Baird reaffirmed a hold rating and issued a $45.00 price objective on shares of Flowserve in a research note on Friday, December 15th. Stifel Nicolaus reaffirmed a hold rating and issued a $47.00 price objective (up from $43.00) on shares of Flowserve in a research note on Tuesday, January 16th. Finally, Royal Bank of Canada raised shares of Flowserve from an underperform rating to a sector perform rating in a research note on Tuesday, February 20th. Two analysts have rated the stock with a sell rating, eleven have given a hold rating and four have issued a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and an average price target of $43.67.
Flowserve (NYSE:FLS) last issued its earnings results on Thursday, February 15th. The industrial products company reported $0.50 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.52 by ($0.02). The company had revenue of $1.03 billion for the quarter, compared to analysts’ expectations of $1.03 billion. Flowserve had a negative net margin of 0.04% and a positive return on equity of 10.36%. The firm’s revenue for the quarter was down 3.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.14 earnings per share. analysts predict that Flowserve will post 1.65 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, April 13th. Investors of record on Thursday, March 29th will be paid a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a yield of 1.66%. The ex-dividend date of this dividend is Wednesday, March 28th. Flowserve’s dividend payout ratio (DPR) is presently 55.88%.
Several hedge funds have recently added to or reduced their stakes in the business. Colonial Trust Advisors lifted its position in shares of Flowserve by 2.4% during the fourth quarter. Colonial Trust Advisors now owns 56,860 shares of the industrial products company’s stock valued at $2,396,000 after buying an additional 1,320 shares during the last quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp lifted its position in shares of Flowserve by 22.0% during the fourth quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 73,863 shares of the industrial products company’s stock valued at $3,112,000 after buying an additional 13,338 shares during the last quarter. OLD Mutual Customised Solutions Proprietary Ltd. lifted its position in shares of Flowserve by 44.1% during the fourth quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 8,500 shares of the industrial products company’s stock valued at $358,000 after buying an additional 2,600 shares during the last quarter. MetLife Investment Advisors LLC purchased a new stake in shares of Flowserve during the fourth quarter valued at about $1,703,000. Finally, Gotham Asset Management LLC lifted its position in shares of Flowserve by 29.4% during the fourth quarter. Gotham Asset Management LLC now owns 137,210 shares of the industrial products company’s stock valued at $5,781,000 after buying an additional 31,210 shares during the last quarter.
Flowserve Company Profile
Flowserve Corporation is a manufacturer and aftermarket service provider of flow control systems. The Company’s segments include Engineered Product Division, Industrial Product Division and Flow Control Division. Its geographic segments include North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
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