Flowco (NYSE:FLOC) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Flowco Holdings Inc. shares surged from a previous close of $17.14 to an opening price of $18.84 following a strong earnings report, with EPS of $1.26 significantly exceeding analysts' estimates of $0.32.
• The company announced a quarterly dividend of $0.08 per share, effective August 29th, 2023, reflecting an annualized yield of 1.8% and a payout ratio of 17.39%.
• A share buyback plan allowing for repurchases of up to $50 million in stock has been initiated, which typically indicates management's confidence in the company's undervaluation.

Shares of Flowco Holdings Inc. (NYSE:FLOC - Get Free Report) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $17.14, but opened at $18.84. Flowco shares last traded at $17.78, with a volume of 9,927 shares traded.

The company reported $1.26 earnings per share for the quarter, beating analysts' consensus estimates of $0.32 by $0.94.

Flowco Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be given a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date is Friday, August 15th. Flowco's dividend payout ratio (DPR) is 17.39%.

Flowco announced that its Board of Directors has initiated a share buyback plan on Thursday, June 12th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the company to reacquire up to 3% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

Analyst Ratings Changes

A number of analysts have recently issued reports on the company. Evercore ISI dropped their price target on Flowco from $35.00 to $32.00 and set an "outperform" rating for the company in a research report on Wednesday, May 14th. Piper Sandler restated an "overweight" rating and issued a $33.00 target price (down previously from $34.00) on shares of Flowco in a research report on Wednesday, May 14th. Finally, Jefferies Financial Group set a $32.00 target price on Flowco and gave the stock a "buy" rating in a research report on Wednesday, May 14th. Five investment analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat.com, Flowco has a consensus rating of "Buy" and an average target price of $32.40.

Institutional Trading of Flowco

A number of hedge funds have recently bought and sold shares of the company. Peregrine Capital Management LLC increased its stake in Flowco by 35.3% in the 2nd quarter. Peregrine Capital Management LLC now owns 412,919 shares of the company's stock worth $7,354,000 after purchasing an additional 107,765 shares during the period. Y Intercept Hong Kong Ltd purchased a new position in Flowco in the 2nd quarter worth approximately $208,000. Vontobel Holding Ltd. purchased a new position in Flowco in the 2nd quarter worth approximately $1,290,000. Goldman Sachs Group Inc. purchased a new position in Flowco in the 1st quarter worth approximately $878,000. Finally, Rhumbline Advisers purchased a new position in shares of Flowco during the first quarter valued at approximately $646,000.

Flowco Price Performance

The firm has a market capitalization of $1.62 billion and a PE ratio of 9.74. The company's 50 day moving average is $18.02.

About Flowco

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.

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