Flowserve (NYSE:FLS) Shares Gap Down on Disappointing Earnings

Flowserve Co. (NYSE:FLS) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $63.10, but opened at $57.68. Flowserve shares last traded at $58.31, with a volume of 488,665 shares changing hands.

The industrial products company reported $0.70 earnings per share for the quarter, missing analysts’ consensus estimates of $0.77 by ($0.07). The business had revenue of $1.18 billion during the quarter, compared to analysts’ expectations of $1.21 billion. Flowserve had a return on equity of 17.10% and a net margin of 5.90%.

Flowserve Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, April 11th. Stockholders of record on Friday, March 28th will be paid a $0.21 dividend. The ex-dividend date of this dividend is Friday, March 28th. This represents a $0.84 annualized dividend and a dividend yield of 1.42%. Flowserve’s dividend payout ratio is presently 39.25%.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Bank of America upped their target price on shares of Flowserve from $60.00 to $65.00 and gave the stock a “buy” rating in a research note on Wednesday, October 30th. StockNews.com downgraded shares of Flowserve from a “strong-buy” rating to a “buy” rating in a research report on Friday, December 27th. The Goldman Sachs Group upgraded shares of Flowserve from a “sell” rating to a “neutral” rating and increased their price objective for the company from $55.00 to $69.00 in a research report on Thursday, December 12th. TD Cowen increased their price objective on shares of Flowserve from $60.00 to $75.00 and gave the company a “buy” rating in a research report on Thursday, January 16th. Finally, Stifel Nicolaus increased their price objective on shares of Flowserve from $72.00 to $75.00 and gave the company a “buy” rating in a research report on Friday, January 24th. Two analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $67.50.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in FLS. True Wealth Design LLC bought a new position in Flowserve in the third quarter worth approximately $25,000. Headlands Technologies LLC increased its stake in shares of Flowserve by 4,790.0% in the fourth quarter. Headlands Technologies LLC now owns 489 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 479 shares in the last quarter. Ashton Thomas Securities LLC bought a new stake in shares of Flowserve during the 3rd quarter valued at $29,000. Wilmington Savings Fund Society FSB bought a new stake in shares of Flowserve during the 3rd quarter valued at $29,000. Finally, Allworth Financial LP raised its position in shares of Flowserve by 159.9% during the 3rd quarter. Allworth Financial LP now owns 655 shares of the industrial products company’s stock valued at $34,000 after purchasing an additional 403 shares during the period. 93.93% of the stock is currently owned by institutional investors.

Flowserve Stock Down 6.4 %

The stock has a market capitalization of $7.76 billion, a P/E ratio of 29.23, a P/E/G ratio of 1.27 and a beta of 1.42. The company’s 50-day moving average price is $60.75 and its 200 day moving average price is $55.69. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.39 and a current ratio of 1.99.

About Flowserve

Flowserve Corporation designs, manufactures, distributes, and services industrial flow management equipment in the United States, Canada, Mexico, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Flowserve Pump Division (FPD) and Flow Control Division (FCD) segments. The FPD segment offers custom and pre-configured pumps and pump systems, mechanical seals, auxiliary systems, replacement parts, upgrades, and related aftermarket services; and equipment services, including installation and commissioning services, seal systems spare parts, repairs, advanced diagnostics, re-rate and upgrade solutions, retrofit programs, and machining and asset management solutions, as well as manufactures a gas-lubricated mechanical seal for use in high-speed compressors for gas pipelines and in the oil and gas production and process markets.