Flowco (NYSE:FLOC) Shares Down 9.5% After Analyst Downgrade

Key Points

• Flowco Holdings Inc. experienced a significant drop of 9.5% in its stock prices following an analyst downgrade from Evercore ISI, which lowered the price target from $28.00 to $26.00.
• The company reported $1.26 earnings per share (EPS) for its latest quarter, surpassing the consensus estimate of $0.32 by $0.94.
• Flowco announced a quarterly $0.08 dividend payment, resulting in a 2.0% dividend yield, along with a share buyback program authorizing up to $50 million in stock repurchases.

Shares of Flowco Holdings Inc. (NYSE:FLOC - Get Free Report) fell 9.5% during trading on Wednesday after Piper Sandler lowered their price target on the stock from $33.00 to $28.00. Piper Sandler currently has an overweight rating on the stock. Flowco traded as low as $16.05 and last traded at $16.07. 225,714 shares traded hands during trading, a decline of 50% from the average session volume of 447,969 shares. The stock had previously closed at $17.76.

A number of other research analysts have also recently commented on the company. Evercore ISI reduced their price objective on Flowco from $28.00 to $26.00 and set an "outperform" rating on the stock in a research note on Wednesday. Jefferies Financial Group set a $28.00 price target on Flowco and gave the stock a "buy" rating in a research report on Tuesday. Five analysts have rated the stock with a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat, Flowco currently 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 have recently modified their holdings of FLOC. Bank of New York Mellon Corp bought a new position in Flowco during the 1st quarter worth approximately $1,064,000. Praxis Investment Management Inc. acquired a new stake in shares of Flowco during the 1st quarter valued at approximately $1,210,000. Federated Hermes Inc. bought a new position in Flowco during the first quarter worth $9,485,000. Phoenix Financial Ltd. acquired a new position in Flowco in the first quarter worth $10,333,000. Finally, Sigma Planning Corp bought a new stake in Flowco during the first quarter valued at $359,000.

Flowco Stock Up 1.0%

The stock's fifty day simple moving average is $17.96 and its two-hundred day simple moving average is $21.21. 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 $1.44 billion and a price-to-earnings ratio of 8.65.

Flowco (NYSE:FLOC - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $1.26 EPS for the quarter, beating the consensus estimate of $0.32 by $0.94. The company had revenue of $193.21 million for the quarter, compared to the consensus estimate of $190.16 million. On average, sell-side analysts predict that Flowco Holdings Inc. will post 1.54 earnings per share for the current fiscal year.

Flowco Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Shareholders 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 yield of 2.0%. The ex-dividend date is Friday, August 15th. Flowco's payout ratio is 17.39%.

Flowco declared that its Board of Directors has initiated a share buyback plan on Thursday, June 12th that authorizes the company to repurchase $50.00 million in shares. This repurchase authorization authorizes the company to reacquire up to 3% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

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.