Flowserve Corporation (NYSE:FLS) Rating Lowered to Sell at Zacks Investment Research
Flowserve Corporation (NYSE:FLS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Monday.
According to Zacks, “Flowserve’s shares have underperformed the Zacks categorized Machinery-General industry over the past six months. Over the past few quarters the company has been suffering from precipitous top-line decline, owing to macroeconomic volatility as well as foreign currency headwinds. Pricing pressure has proved to be a major drag on the top-line performance. In addition, cautious spending by clients, loss of sales leverage and related under-absorption has been hurting the company’s profitability. Moreover, capital spending deferrals and reduced activity in its key markets are proving to be major concerns. Also, escalating realignment costs are likely to pressurize short-term margin performance. However, on the flip side, Flowserve’s leading position in the flow control industry and strong aftermarket business are expected to offset some of these challenges. Also, the company’s geographical diversity adds to its strength.”
A number of other research firms have also recently commented on FLS. Stifel Nicolaus reiterated a “buy” rating and issued a $55.00 price objective (up from $53.00) on shares of Flowserve Corporation in a report on Wednesday, May 3rd. BidaskClub upgraded Flowserve Corporation from a “sell” rating to a “hold” rating in a report on Thursday. BMO Capital Markets upped their price objective on Flowserve Corporation from $53.00 to $56.00 and gave the company an “outperform” rating in a report on Thursday, May 4th. Robert W. Baird upgraded Flowserve Corporation from an “underperform” rating to a “neutral” rating and set a $43.00 price objective on the stock in a report on Wednesday, March 15th. Finally, Cowen and Company reiterated an “outperform” rating and issued a $55.00 price objective on shares of Flowserve Corporation in a report on Monday, June 26th. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating and six have issued a buy rating to the stock. The stock has an average rating of “Hold” and an average target price of $57.86.
Flowserve Corporation (NYSE:FLS) traded up 0.43% during midday trading on Monday, reaching $46.51. The company’s stock had a trading volume of 314,532 shares. The company has a market cap of $6.08 billion, a P/E ratio of 50.01 and a beta of 1.48. The firm has a 50 day moving average price of $47.61 and a 200-day moving average price of $48.43. Flowserve Corporation has a 12-month low of $39.13 and a 12-month high of $52.10.
Flowserve Corporation (NYSE:FLS) last released its quarterly earnings data on Monday, May 1st. The industrial products company reported $0.25 EPS for the quarter, beating analysts’ consensus estimates of $0.20 by $0.05. Flowserve Corporation had a return on equity of 15.76% and a net margin of 3.12%. The firm had revenue of $863.63 million for the quarter, compared to analysts’ expectations of $817.56 million. During the same period in the prior year, the firm posted $0.39 earnings per share. The firm’s quarterly revenue was down 8.8% on a year-over-year basis. On average, equities research analysts predict that Flowserve Corporation will post $1.77 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Friday, July 7th. Shareholders of record on Friday, June 23rd were paid a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a yield of 1.64%. The ex-dividend date of this dividend was Wednesday, June 21st. Flowserve Corporation’s dividend payout ratio (DPR) is 81.72%.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Woodstock Corp boosted its position in Flowserve Corporation by 12.9% in the first quarter. Woodstock Corp now owns 21,510 shares of the industrial products company’s stock worth $1,042,000 after buying an additional 2,465 shares during the period. Macquarie Group Ltd. raised its stake in Flowserve Corporation by 3.1% in the fourth quarter. Macquarie Group Ltd. now owns 3,300 shares of the industrial products company’s stock worth $158,000 after buying an additional 100 shares in the last quarter. Kentucky Retirement Systems Insurance Trust Fund bought a new stake in Flowserve Corporation during the fourth quarter worth $203,000. Kentucky Retirement Systems bought a new stake in Flowserve Corporation during the fourth quarter worth $455,000. Finally, Teachers Advisors LLC raised its stake in Flowserve Corporation by 5.4% in the fourth quarter. Teachers Advisors LLC now owns 150,389 shares of the industrial products company’s stock worth $7,226,000 after buying an additional 7,763 shares in the last quarter. Institutional investors own 98.67% of the company’s stock.
Flowserve Corporation 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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