ABC Arbitrage SA Has $5.18 Million Stake in Tenaris S.A. (NYSE:TS)

Key Points

• ABC Arbitrage SA significantly reduced its stake in Tenaris S.A. by 84.1%, selling 703,190 shares and now holding a total of 132,513 shares, valued at approximately $5.18 million as of their latest SEC filing.
• Tenaris's recent quarterly earnings showed a profit of $0.99 EPS, surpassing analyst expectations of $0.88, although its quarterly revenue declined 7.1% year-over-year.
• The company has authorized a stock repurchase plan to buy back up to $1.20 billion of its shares, indicating that its leadership believes its shares may be undervalued in the market.

ABC Arbitrage SA decreased its position in Tenaris S.A. (NYSE:TS - Free Report) by 84.1% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 132,513 shares of the industrial products company's stock after selling 703,190 shares during the period. Tenaris accounts for 1.0% of ABC Arbitrage SA's portfolio, making the stock its 24th largest position. ABC Arbitrage SA's holdings in Tenaris were worth $5,183,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in TS. Millennium Management LLC grew its position in shares of Tenaris by 38.2% during the 4th quarter. Millennium Management LLC now owns 2,816,728 shares of the industrial products company's stock worth $106,444,000 after buying an additional 778,021 shares during the period. Encompass Capital Advisors LLC acquired a new position in Tenaris during the fourth quarter valued at approximately $41,569,000. Massachusetts Financial Services Co. MA increased its stake in Tenaris by 47.0% in the first quarter. Massachusetts Financial Services Co. MA now owns 754,994 shares of the industrial products company's stock valued at $29,528,000 after purchasing an additional 241,290 shares in the last quarter. Medina Value Partners LLC increased its stake in Tenaris by 34.7% in the fourth quarter. Medina Value Partners LLC now owns 566,013 shares of the industrial products company's stock valued at $21,390,000 after purchasing an additional 145,945 shares in the last quarter. Finally, Merewether Investment Management LP acquired a new stake in Tenaris in the fourth quarter worth $20,271,000. 10.45% of the stock is currently owned by institutional investors and hedge funds.

Tenaris Stock Performance

TS traded up $0.13 on Thursday, hitting $35.46. 1,226,708 shares of the company were exchanged, compared to its average volume of 1,539,139. The company has a market cap of $20.62 billion, a PE ratio of 9.64, a PEG ratio of 2.67 and a beta of 1.34. Tenaris S.A. has a 12 month low of $27.49 and a 12 month high of $40.87. The stock's fifty day moving average is $36.62 and its 200-day moving average is $36.26.

Tenaris (NYSE:TS - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The industrial products company reported $0.99 EPS for the quarter, beating analysts' consensus estimates of $0.88 by $0.11. The company had revenue of $3.09 billion during the quarter, compared to the consensus estimate of $3 billion. Tenaris had a net margin of 17.02% and a return on equity of 11.71%. The company's quarterly revenue was down 7.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.59 EPS. As a group, equities research analysts expect that Tenaris S.A. will post 3.14 EPS for the current fiscal year.

Tenaris announced that its board has initiated a share buyback plan on Tuesday, May 27th that allows the company to repurchase $1.20 billion in shares. This repurchase authorization allows the industrial products company to repurchase up to 6.2% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the stock. Morgan Stanley decreased their price target on shares of Tenaris from $35.00 to $34.00 and set an "underweight" rating for the company in a report on Friday, May 16th. BNP Paribas started coverage on Tenaris in a research report on Tuesday, April 22nd. They issued an "outperform" rating for the company. Wall Street Zen downgraded shares of Tenaris from a "buy" rating to a "hold" rating in a report on Sunday, July 13th. Barclays reduced their price target on shares of Tenaris from $48.00 to $46.00 and set an "overweight" rating for the company in a report on Thursday. Finally, Stifel Nicolaus lowered their target price on Tenaris from $43.00 to $41.00 and set a "buy" rating for the company in a report on Tuesday, April 15th. Two analysts have rated the stock with a sell rating, two have issued a hold rating and six have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $43.60.

About Tenaris

Tenaris SA, together with its subsidiaries, produces and sells seamless and welded steel tubular products and related services for the oil and gas industry, and other industrial applications. The company offers steel casings, tubing products, mechanical and structural pipes, line pipes, cold-drawn pipes, and premium joints and couplings; and coiled tubing products for oil and gas drilling and workovers, and subsea pipelines.