Encompass Capital Advisors LLC Invests $13.72 Million in Flowco Holdings Inc. $FLOC

Key Points

• Encompass Capital Advisors LLC acquired a stake in Flowco Holdings Inc., purchasing 534,803 shares valued at about $13.7 million, representing approximately 0.59% of the company's stock.
• Flowco reported an earnings per share of $1.26, significantly exceeding the consensus estimate, along with revenues of $193.21 million for the quarter.
• The company's Board of Directors approved a $50 million stock repurchase plan, indicating that they believe the stock is currently undervalued.

Encompass Capital Advisors LLC acquired a new position in shares of Flowco Holdings Inc. (NYSE:FLOC - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 534,803 shares of the company's stock, valued at approximately $13,718,000. Encompass Capital Advisors LLC owned about 0.59% of Flowco at the end of the most recent quarter.

Other institutional investors have also made changes to their positions in the company. New York State Common Retirement Fund acquired a new stake in shares of Flowco during the first quarter valued at about $156,000. Yorktown Management & Research Co Inc acquired a new stake in shares of Flowco during the first quarter valued at about $218,000. Corebridge Financial Inc. acquired a new position in shares of Flowco in the first quarter valued at approximately $247,000. Deutsche Bank AG acquired a new position in shares of Flowco in the first quarter valued at approximately $292,000. Finally, Invesco Ltd. acquired a new position in shares of Flowco in the first quarter valued at approximately $292,000.

Flowco Stock Performance

FLOC stock traded down $0.40 on Monday, hitting $15.16. The company's stock had a trading volume of 396,629 shares, compared to its average volume of 438,951. The firm has a 50 day moving average of $17.32 and a two-hundred day moving average of $19.52. Flowco Holdings Inc. has a 1 year low of $14.89 and a 1 year high of $30.50. The stock has a market cap of $1.37 billion and a price-to-earnings ratio of 8.24. The company has a current ratio of 3.25, a quick ratio of 1.57 and a debt-to-equity ratio of 1.19.

Flowco (NYSE:FLOC - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $1.26 EPS for the quarter, beating the consensus estimate of $0.32 by $0.94. The business had revenue of $193.21 million during the quarter, compared to analysts' expectations of $190.16 million. Equities analysts predict that Flowco Holdings Inc. will post 1.54 EPS for the current fiscal year.

Flowco Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Friday, August 15th were paid a $0.08 dividend. This represents a $0.32 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend was Friday, August 15th. Flowco's payout ratio is currently 17.39%.

Flowco declared that its Board of Directors has initiated a stock repurchase plan on Thursday, June 12th that permits the company to repurchase $50.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 3% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on FLOC shares. Evercore ISI dropped their price objective on shares of Flowco from $28.00 to $26.00 and set an "outperform" rating for the company in a report on Wednesday, August 6th. Zacks Research upgraded shares of Flowco from a "strong sell" rating to a "hold" rating in a research note on Thursday, August 14th. Piper Sandler decreased their price target on shares of Flowco from $33.00 to $28.00 and set an "overweight" rating for the company in a research note on Wednesday, August 6th. Finally, Jefferies Financial Group set a $28.00 price target on shares of Flowco and gave the stock a "buy" rating in a research note on Tuesday, August 5th. Two research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Buy" and an average price target of $29.40.

Flowco Profile

We are a leading provider of production optimization, artificial lift and methane abatement solutions for the oil and natural gas industry. Our products and services include a full range of equipment and technology solutions that enable our customers to efficiently and cost-effectively maximize the profitability and economic lifespan of the production phase of their operations.