ABC Arbitrage SA Sells 703,190 Shares of 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 reduced its position in shares of Tenaris S.A. (NYSE:TS - Free Report) by 84.1% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 132,513 shares of the industrial products company's stock after selling 703,190 shares during the period. Tenaris comprises about 1.0% of ABC Arbitrage SA's investment portfolio, making the stock its 24th largest holding. ABC Arbitrage SA's holdings in Tenaris were worth $5,183,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently modified their holdings of the company. PNC Financial Services Group Inc. lifted its position in shares of Tenaris by 4.0% in the first quarter. PNC Financial Services Group Inc. now owns 8,088 shares of the industrial products company's stock valued at $316,000 after buying an additional 308 shares during the last quarter. Harbour Investments Inc. bought a new position in shares of Tenaris during the first quarter worth approximately $39,000. Knights of Columbus Asset Advisors LLC bought a new position in Tenaris during the 1st quarter worth $121,000. Assetmark Inc. increased its stake in Tenaris by 1.5% during the 1st quarter. Assetmark Inc. now owns 449,838 shares of the industrial products company's stock worth $17,593,000 after acquiring an additional 6,653 shares during the period. Finally, Cadence Wealth Management LLC increased its stake in Tenaris by 4.9% during the 1st quarter. Cadence Wealth Management LLC now owns 19,044 shares of the industrial products company's stock worth $745,000 after acquiring an additional 895 shares during the period. 10.45% of the stock is owned by institutional investors and hedge funds.

Tenaris Trading Up 0.9%

Tenaris stock traded up $0.31 during midday trading on Friday, reaching $35.76. The stock had a trading volume of 1,097,404 shares, compared to its average volume of 1,536,138. Tenaris S.A. has a 12 month low of $27.49 and a 12 month high of $40.87. The company has a market capitalization of $20.79 billion, a P/E ratio of 9.72, a PEG ratio of 2.68 and a beta of 1.34. The company has a fifty day moving average price of $36.70 and a two-hundred day moving average price of $36.22.

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

Tenaris announced that its Board of Directors has approved a share repurchase program on Tuesday, May 27th that authorizes the company to buyback $1.20 billion in shares. This buyback authorization authorizes the industrial products company to purchase up to 6.2% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board believes its stock is undervalued.

Analyst Ratings Changes

A number of brokerages have weighed in on TS. Morgan Stanley reduced their target price on Tenaris from $35.00 to $34.00 and set an "underweight" rating on the stock in a report on Friday, May 16th. BNP Paribas initiated coverage on Tenaris in a report on Tuesday, April 22nd. They set an "outperform" rating on the stock. Sanford C. Bernstein initiated coverage on Tenaris in a report on Monday, July 21st. They set an "outperform" rating on the stock. Barclays lowered their price objective on Tenaris from $48.00 to $46.00 and set an "overweight" rating for the company in a research report on Thursday. Finally, Stifel Nicolaus lowered their price objective on Tenaris from $43.00 to $41.00 and set a "buy" rating for the company in a research report on Tuesday, April 15th. Two research 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, Tenaris currently has a consensus rating of "Hold" and a consensus target price of $43.60.

Tenaris Profile

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.