Flowserve (FLS) Cut to Sell at Zacks Investment Research
Zacks Investment Research lowered shares of Flowserve (NYSE:FLS) from a hold rating to a sell rating in a research report report published on Tuesday morning.
According to Zacks, “Flowserve’s shares have underperformed the 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.”
Several other analysts also recently weighed in on FLS. Stifel Nicolaus reiterated a buy rating and set a $49.00 target price on shares of Flowserve in a research report on Tuesday, October 17th. BMO Capital Markets downgraded Flowserve from an outperform rating to a market perform rating and decreased their price objective for the company from $51.00 to $41.00 in a report on Friday, November 3rd. Robert W. Baird restated a hold rating and issued a $43.00 price objective on shares of Flowserve in a report on Wednesday, October 4th. KeyCorp restated a hold rating on shares of Flowserve in a report on Thursday, September 28th. Finally, Citigroup restated a neutral rating and issued a $48.00 price objective (up from $46.00) on shares of Flowserve in a report on Monday, October 9th. Four research analysts have rated the stock with a sell rating, nine have assigned a hold rating and five have given a buy rating to the stock. The stock currently has an average rating of Hold and an average price target of $43.58.
Shares of Flowserve (NYSE:FLS) opened at $43.40 on Tuesday. Flowserve has a 52-week low of $37.51 and a 52-week high of $52.10. The firm has a market capitalization of $5,672.17, a price-to-earnings ratio of 27.83, a PEG ratio of 2.64 and a beta of 1.53. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.30 and a current ratio of 2.12.
Flowserve (NYSE:FLS) last released its earnings results on Wednesday, November 1st. The industrial products company reported $0.37 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.03. Flowserve had a return on equity of 12.09% and a net margin of 4.58%. The business had revenue of $883.38 million during the quarter, compared to the consensus estimate of $871.20 million. During the same period last year, the company earned $0.52 earnings per share. The business’s revenue for the quarter was down 6.6% compared to the same quarter last year. equities research analysts predict that Flowserve will post 1.37 EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 19th. Investors of record on Friday, January 5th will be issued a $0.19 dividend. The ex-dividend date of this dividend is Thursday, January 4th. This represents a $0.76 annualized dividend and a dividend yield of 1.75%. Flowserve’s payout ratio is currently 58.92%.
Several hedge funds have recently added to or reduced their stakes in FLS. Zions Bancorporation purchased a new position in Flowserve in the third quarter valued at about $117,000. Federated Investors Inc. PA grew its stake in Flowserve by 1.8% in the second quarter. Federated Investors Inc. PA now owns 2,539 shares of the industrial products company’s stock valued at $118,000 after purchasing an additional 46 shares during the last quarter. Evercore Wealth Management LLC grew its stake in Flowserve by 41.2% in the second quarter. Evercore Wealth Management LLC now owns 2,593 shares of the industrial products company’s stock valued at $120,000 after purchasing an additional 756 shares during the last quarter. Sciencast Management LP purchased a new position in Flowserve in the second quarter valued at about $201,000. Finally, Blair William & Co. IL purchased a new position in Flowserve in the second quarter valued at about $204,000.
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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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