Flowco (NYSE:FLOC) Shares Gap Up After Strong 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.

Flowco Holdings Inc. (NYSE:FLOC - Get Free Report) gapped up before the market opened on Tuesday following a stronger than expected earnings report. 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 changing hands.

The company reported $1.26 earnings per share for the quarter, topping analysts' consensus estimates of $0.32 by $0.94. The firm had revenue of $193.21 million for the quarter, compared to the consensus estimate of $190.16 million.

Flowco Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Friday, August 15th will be issued a $0.08 dividend. The ex-dividend date of this dividend is Friday, August 15th. This represents a $0.32 dividend on an annualized basis and a yield of 2.0%. Flowco's payout ratio is currently 17.39%.

Flowco declared that its board has initiated a share buyback program on Thursday, June 12th that authorizes the company to buyback $50.00 million in shares. This buyback authorization authorizes the company to repurchase up to 3% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its shares are undervalued.

Analysts Set New Price Targets

Several research analysts recently issued reports on FLOC shares. Jefferies Financial Group cut their target price on shares of Flowco from $32.00 to $28.00 and set a "buy" rating on the stock in a research note on Tuesday. Evercore ISI reduced their target price on shares of Flowco from $28.00 to $26.00 and set an "outperform" rating for the company in a research note on Wednesday. Finally, Piper Sandler lowered their price objective on shares of Flowco from $33.00 to $28.00 and set an "overweight" rating for the company in a report on Wednesday. Five research analysts have rated the stock with a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat.com, the company has an average rating of "Buy" and an average price target of $29.40.

Institutional Investors Weigh In On Flowco

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Praxis Investment Management Inc. acquired a new position in shares of Flowco in the 1st quarter worth approximately $1,210,000. Yorktown Management & Research Co Inc bought a new position in Flowco during the first quarter worth about $218,000. Peregrine Capital Management LLC bought a new stake in shares of Flowco during the first quarter worth approximately $7,827,000. Bank of New York Mellon Corp acquired a new position in Flowco during the first quarter valued at approximately $1,064,000. Finally, Emerald Mutual Fund Advisers Trust acquired a new position in shares of Flowco during the first quarter worth $3,512,000.

Flowco Stock Up 1.8%

The company has a debt-to-equity ratio of 1.19, a current ratio of 3.25 and a quick ratio of 1.63. The company has a market capitalization of $1.45 billion and a price-to-earnings ratio of 8.72. The firm's fifty day moving average price is $17.94 and its 200-day moving average price is $21.18.

Flowco Company 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.