Flex LNG (NYSE:FLNG) Trading 1.5% Higher - Should You Buy?

Key Points

• Flex LNG shares traded up 1.5% to $31.30 on Monday (volume down 22%), yet analysts hold an average "Hold" rating with a consensus price target of $23.00 and Wall Street Zen recently downgraded the stock to a "sell".
• The company missed quarterly EPS estimates ($0.43 vs. $0.61) while reporting $87.5M in revenue and maintaining a strong net margin (21.5%) and ROE (13.5%).
• Flex LNG pays a quarterly dividend of $0.75 (annualized $3.00, a 9.6% yield), but the payout ratio is an elevated 215.83%, which raises sustainability concerns.

Flex LNG Ltd. (NYSE:FLNG - Get Free Report)'s stock price traded up 1.5% during mid-day trading on Monday . The company traded as high as $31.45 and last traded at $31.30. 380,064 shares were traded during trading, a decline of 22% from the average session volume of 485,619 shares. The stock had previously closed at $30.85.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Wall Street Zen cut Flex LNG from a "hold" rating to a "sell" rating in a report on Saturday, February 7th. Weiss Ratings reissued a "hold (c)" rating on shares of Flex LNG in a research report on Friday, April 10th. Two equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $23.00.

Flex LNG Stock Up 1.5%

The firm has a 50-day moving average of $29.08 and a 200 day moving average of $26.90. The stock has a market capitalization of $1.69 billion, a price-to-earnings ratio of 22.52 and a beta of 0.27. The company has a current ratio of 3.04, a quick ratio of 2.98 and a debt-to-equity ratio of 2.42.

Flex LNG (NYSE:FLNG - Get Free Report) last released its quarterly earnings results on Thursday, February 12th. The company reported $0.43 EPS for the quarter, missing the consensus estimate of $0.61 by ($0.18). The company had revenue of $87.54 million for the quarter, compared to analyst estimates of $86.75 million. Flex LNG had a return on equity of 13.46% and a net margin of 21.52%.

Flex LNG Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, March 12th. Investors of record on Friday, February 27th were given a dividend of $0.75 per share. The ex-dividend date of this dividend was Friday, February 27th. This represents a $3.00 annualized dividend and a yield of 9.6%. Flex LNG's payout ratio is 215.83%.

Hedge Funds Weigh In On Flex LNG

A number of institutional investors have recently made changes to their positions in FLNG. Royal Bank of Canada raised its position in shares of Flex LNG by 15.2% in the 1st quarter. Royal Bank of Canada now owns 55,436 shares of the company's stock valued at $1,275,000 after purchasing an additional 7,331 shares in the last quarter. Goldman Sachs Group Inc. raised its position in shares of Flex LNG by 22.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 149,097 shares of the company's stock valued at $3,428,000 after purchasing an additional 27,543 shares in the last quarter. Rhumbline Advisers raised its position in shares of Flex LNG by 6.9% in the 2nd quarter. Rhumbline Advisers now owns 48,796 shares of the company's stock valued at $1,073,000 after purchasing an additional 3,164 shares in the last quarter. Invesco Ltd. raised its position in shares of Flex LNG by 3.6% in the 2nd quarter. Invesco Ltd. now owns 22,471 shares of the company's stock valued at $494,000 after purchasing an additional 784 shares in the last quarter. Finally, First Trust Advisors LP acquired a new position in shares of Flex LNG in the 2nd quarter valued at approximately $420,000.

About Flex LNG

Flex LNG Ltd is a Bermuda-registered owner and operator of liquefied natural gas (LNG) carriers, offering shipping services to major energy producers and utilities worldwide. Since its establishment in 2006, the company has focused on building a versatile fleet of modern, eco-efficient LNG vessels designed to meet the growing global demand for lower-emission fuel transportation.

The company's core activities encompass time-charter contracts, long-term transportation agreements and spot market voyages.

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