Fluor Corporation (FLR) Downgraded to “Strong Sell” at Zacks Investment Research
Fluor Corporation (NYSE:FLR) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Monday.
According to Zacks, “Fluor’s shares have underperformed compared to the Zacks-categorized Engineering/R&D Services industry average over the past six months. Of late, the company is facing a dearth of engineering and new awards which has hurt its growth prospects significantly. Fluor’s margins are expected to remain under pressure as the company continues to transition from higher margin engineering to lower margin construction activities. Also, an increased level of irrational bidding in feed pricing, along with customer’s tendency to settle for a lower contract price, have been adding to the company’s woes. On account of these challenges the company has lowered its full-year 2017 guidance. However, on the flip side, the company’s market diversity as well as strong focus on streamlining business structure are expected to offset some of these challenges, thus stoking growth going forward.”
FLR has been the subject of a number of other reports. Canaccord Genuity reissued a “hold” rating and issued a $57.00 price target on shares of Fluor Corporation in a report on Friday, February 17th. Credit Suisse Group reissued a “neutral” rating on shares of Fluor Corporation in a report on Friday, February 17th. Citigroup Inc. reissued a “buy” rating and issued a $65.00 price target on shares of Fluor Corporation in a report on Monday, March 13th. Finally, DA Davidson raised Fluor Corporation from a “neutral” rating to a “buy” rating and set a $55.00 price target for the company in a report on Thursday, June 1st. Two research analysts have rated the stock with a sell rating, five have issued a hold rating and six have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus target price of $54.91.
Shares of Fluor Corporation (NYSE:FLR) traded up 2.33% during trading on Monday, hitting $47.43. 536,151 shares of the stock traded hands. The firm has a market cap of $6.63 billion, a price-to-earnings ratio of 28.07 and a beta of 1.42. The stock has a 50 day moving average of $47.67 and a 200 day moving average of $52.44. Fluor Corporation has a 52-week low of $44.02 and a 52-week high of $58.37.
Fluor Corporation (NYSE:FLR) last issued its earnings results on Thursday, May 4th. The construction company reported $0.57 EPS for the quarter, missing the Zacks’ consensus estimate of $0.67 by $0.10. Fluor Corporation had a net margin of 1.22% and a return on equity of 13.89%. The firm had revenue of $4.84 billion during the quarter, compared to analysts’ expectations of $4.83 billion. During the same quarter in the prior year, the company earned $0.75 EPS. Fluor Corporation’s quarterly revenue was up 9.3% on a year-over-year basis. Analysts expect that Fluor Corporation will post $2.47 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 5th. Stockholders of record on Friday, June 2nd will be paid a dividend of $0.21 per share. This represents a $0.84 annualized dividend and a dividend yield of 1.81%. The ex-dividend date is Wednesday, May 31st. Fluor Corporation’s payout ratio is 50.00%.
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In other news, insider Robin K. Chopra sold 1,800 shares of the company’s stock in a transaction that occurred on Tuesday, March 14th. The stock was sold at an average price of $53.85, for a total transaction of $96,930.00. Following the completion of the transaction, the insider now directly owns 8,562 shares of the company’s stock, valued at approximately $461,063.70. The sale was disclosed in a filing with the SEC, which is available at this link. Corporate insiders own 1.30% of the company’s stock.
Hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. increased its position in shares of Fluor Corporation by 3,137.9% in the first quarter. BlackRock Inc. now owns 9,025,119 shares of the construction company’s stock valued at $474,903,000 after buying an additional 8,746,386 shares during the last quarter. FMR LLC increased its position in shares of Fluor Corporation by 1,417.9% in the fourth quarter. FMR LLC now owns 8,412,897 shares of the construction company’s stock valued at $441,845,000 after buying an additional 7,858,641 shares during the last quarter. Norges Bank acquired a new position in shares of Fluor Corporation during the fourth quarter valued at $74,963,000. Clearbridge Investments LLC increased its position in shares of Fluor Corporation by 4.1% in the first quarter. Clearbridge Investments LLC now owns 12,415,798 shares of the construction company’s stock valued at $653,319,000 after buying an additional 487,187 shares during the last quarter. Finally, Vanguard Group Inc. increased its position in shares of Fluor Corporation by 3.6% in the first quarter. Vanguard Group Inc. now owns 13,312,237 shares of the construction company’s stock valued at $700,490,000 after buying an additional 460,481 shares during the last quarter. 83.32% of the stock is owned by institutional investors and hedge funds.
About Fluor Corporation
Fluor Corporation (Fluor) is a holding company. The Company operates its business in four segments: Energy, Chemicals & Mining; Industrial, Infrastructure & Power; Government, and Maintenance, Modification & Asset Integrity (MMAI). The Company, through its subsidiaries, offers professional services providing engineering, procurement, construction, fabrication and modularization, commissioning and maintenance, as well as project management services on a global basis.
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