TechnipFMC (NYSE:FTI) Share Price Breaks Below Two Hundred Day Moving Average – Should You Sell?

TechnipFMC plc (NYSE:FTI) passed below its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $68.90 and traded as low as $66.30. TechnipFMC shares last traded at $66.9960, with a volume of 4,496,975 shares changing hands.

TechnipFMC News Summary

Here are the key news stories impacting TechnipFMC this week:

• Positive Sentiment: Material earnings and revenue beats: TechnipFMC reported adjusted earnings of $1.05 per share, well above the $0.88 consensus estimate and up from $0.75 a year earlier. Revenue reached $2.90 billion, exceeding the $2.79 billion forecast and increasing 9.4% year over year. TechnipFMC third-quarter earnings results
• Positive Sentiment: Strong operating performance: The quarter featured an 11.28% net margin and 36.54% return on equity. Management commentary and the earnings presentation highlighted continued momentum in the business and expectations for a sustained, long deepwater cycle—an important demand driver for TechnipFMC’s subsea services and equipment. TechnipFMC deepwater cycle outlook
• Positive Sentiment: Improved growth narrative: The earnings call and presentation suggest that offshore energy investment is supporting TechnipFMC’s order and revenue outlook. Investors appear encouraged that quarterly growth is being supported by durable project activity rather than only short-term cost controls. TechnipFMC Q3 earnings call transcript
• Neutral Sentiment: Valuation remains a consideration: Articles describe FTI as potentially undervalued under a growth-at-a-reasonable-price strategy. However, the stock trades at roughly 23.9 times earnings after a substantial one-year advance, so further gains may depend on continued earnings growth and execution. TechnipFMC valuation analysis

Wall Street Analysts Forecast Growth

Several analysts have weighed in on FTI shares. Wall Street Zen downgraded TechnipFMC from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Zacks Research raised TechnipFMC from a “hold” rating to a “strong-buy” rating in a report on Monday, October 5th. Barclays cut their price target on shares of TechnipFMC from $87.00 to $86.00 and set an “overweight” rating on the stock in a report on Thursday, October 15th. UBS Group assumed coverage on shares of TechnipFMC in a research report on Monday, October 12th. They set a “buy” rating and a $89.00 price target for the company. Finally, Citigroup lifted their price objective on shares of TechnipFMC from $80.00 to $85.00 and gave the company a “buy” rating in a research note on Tuesday, September 15th. Three research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $74.83.

TechnipFMC Trading Up 2.6%

The company has a current ratio of 1.09, a quick ratio of 0.85 and a debt-to-equity ratio of 0.08. The firm has a market cap of $26.94 billion, a PE ratio of 21.60, a price-to-earnings-growth ratio of 1.07 and a beta of 0.83. The company has a 50-day simple moving average of $72.32 and a 200 day simple moving average of $68.99.

TechnipFMC (NYSE:FTI) last released its quarterly earnings results on Thursday, October 29th. The oil and gas company reported $1.05 earnings per share for the quarter, topping analysts’ consensus estimates of $0.88 by $0.17. The company had revenue of $2.90 billion during the quarter, compared to analysts’ expectations of $2.79 billion. TechnipFMC had a return on equity of 39.82% and a net margin of 12.04%. TechnipFMC’s quarterly revenue was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.75 EPS. As a group, sell-side analysts forecast that TechnipFMC plc will post 3.20 earnings per share for the current fiscal year.

TechnipFMC Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 2nd. Shareholders of record on Tuesday, November 17th will be paid a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 0.3%. The ex-dividend date is Tuesday, November 17th. TechnipFMC’s payout ratio is 6.29%.

Insider Activity at TechnipFMC

In other news, Director Eric Mullins purchased 6,365 shares of the stock in a transaction dated Friday, August 14th. The shares were purchased at an average cost of $78.55 per share, with a total value of $499,970.75. Following the completion of the purchase, the director directly owned 8,070 shares of the company’s stock, valued at approximately $633,898.50. The trade was a 373.31% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, insider Thierry Conti sold 6,000 shares of the business’s stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $71.85, for a total value of $431,100.00. Following the sale, the insider owned 85,813 shares of the company’s stock, valued at $6,165,664.05. The trade was a 6.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.40% of the company’s stock.

Institutional Investors Weigh In On TechnipFMC

A number of hedge funds have recently modified their holdings of FTI. BlackRock Inc. purchased a new stake in TechnipFMC during the second quarter worth approximately $3,081,514,000. Amundi increased its stake in TechnipFMC by 72.6% in the second quarter. Amundi now owns 4,358,115 shares of the oil and gas company’s stock valued at $288,943,000 after purchasing an additional 1,832,581 shares during the last quarter. Bank of America Corp DE acquired a new stake in TechnipFMC during the second quarter worth approximately $226,069,000. Bank of New York Mellon Corp raised its holdings in TechnipFMC by 7.3% during the first quarter. Bank of New York Mellon Corp now owns 2,878,798 shares of the oil and gas company’s stock worth $199,011,000 after purchasing an additional 194,799 shares in the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. lifted its position in shares of TechnipFMC by 195.5% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,791,873 shares of the oil and gas company’s stock worth $189,624,000 after buying an additional 1,847,158 shares during the last quarter. 96.58% of the stock is currently owned by institutional investors and hedge funds.

TechnipFMC Company Profile

TechnipFMC plc (NYSE: FTI) is an energy technology and services company that designs, manufactures and delivers equipment and integrated solutions for the exploration, development and production of oil and natural gas resources. The company serves energy operators, engineering and construction firms, and other participants across the global energy industry.

TechnipFMC operates through two principal areas: Subsea and Surface Technologies. Its subsea business provides subsea production systems, subsea services, installation solutions and related technologies used to develop offshore fields.