Flowserve (NYSE:FLS) Shares Gap Up After Earnings Beat

Key Points

• Flowserve's share price gapped up from $54.86 to $58.30 before closing at $56.78, with significant trading volume of over 2.4 million shares.
• Analysts are optimistic, with a consensus average rating of "Buy" and a target price of $64, as several firms raised their price targets for the stock.
• Flowserve recently declared a quarterly dividend of $0.21 per share, yielding 1.53%, with a payout ratio of 39.25%.

Flowserve Corporation (NYSE:FLS - Get Free Report) shares gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $54.86, but opened at $58.30. Flowserve shares last traded at $56.78, with a volume of 2,432,057 shares trading hands.

The industrial products company reported $0.91 EPS for the quarter, beating analysts' consensus estimates of $0.78 by $0.13. Flowserve had a net margin of 6.28% and a return on equity of 18.25%. The firm had revenue of $1.19 billion for the quarter, compared to the consensus estimate of $1.22 billion.

Flowserve Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 11th. Investors of record on Friday, June 27th were given a dividend of $0.21 per share. The ex-dividend date of this dividend was Friday, June 27th. This represents a $0.84 dividend on an annualized basis and a yield of 1.6%. Flowserve's payout ratio is presently 38.01%.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the stock. Wall Street Zen raised shares of Flowserve from a "buy" rating to a "strong-buy" rating in a research report on Friday, June 6th. Citigroup lifted their target price on shares of Flowserve from $58.00 to $65.00 and gave the company a "buy" rating in a research note on Monday, July 14th. The Goldman Sachs Group lifted their target price on shares of Flowserve from $54.00 to $60.00 and gave the company a "neutral" rating in a research note on Tuesday, July 8th. Robert W. Baird reduced their target price on shares of Flowserve from $71.00 to $70.00 and set an "outperform" rating for the company in a research note on Thursday, May 1st. Finally, Mizuho set a $60.00 target price on shares of Flowserve in a research note on Friday, May 16th. One investment analyst has rated the stock with a hold rating, eight have issued a buy rating and two have issued a strong buy rating to the company. According to MarketBeat.com, Flowserve presently has a consensus rating of "Buy" and a consensus target price of $65.78.

Institutional Trading of Flowserve

Several large investors have recently modified their holdings of the company. Envestnet Asset Management Inc. boosted its holdings in shares of Flowserve by 2.5% during the 2nd quarter. Envestnet Asset Management Inc. now owns 231,833 shares of the industrial products company's stock worth $12,136,000 after buying an additional 5,593 shares during the period. Brighton Jones LLC bought a new stake in Flowserve in the 2nd quarter valued at $549,000. Focus Partners Advisor Solutions LLC boosted its holdings in Flowserve by 38.2% in the 2nd quarter. Focus Partners Advisor Solutions LLC now owns 7,734 shares of the industrial products company's stock valued at $405,000 after purchasing an additional 2,137 shares during the period. AlphaQuest LLC boosted its holdings in Flowserve by 96.5% in the 2nd quarter. AlphaQuest LLC now owns 11,926 shares of the industrial products company's stock valued at $624,000 after purchasing an additional 5,856 shares during the period. Finally, R Squared Ltd boosted its holdings in Flowserve by 13.2% in the 2nd quarter. R Squared Ltd now owns 7,932 shares of the industrial products company's stock valued at $415,000 after purchasing an additional 922 shares during the period. 93.93% of the stock is owned by institutional investors.

Flowserve Trading Down 4.1%

The company has a current ratio of 2.10, a quick ratio of 1.46 and a debt-to-equity ratio of 0.63. The business's fifty day simple moving average is $51.26 and its two-hundred day simple moving average is $51.78. The stock has a market capitalization of $7.02 billion, a P/E ratio of 24.30, a P/E/G ratio of 1.19 and a beta of 1.25.

About Flowserve

Flowserve Corporation designs, manufactures, distributes, and services industrial flow management equipment in the United States, Canada, Mexico, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Flowserve Pump Division (FPD) and Flow Control Division (FCD) segments. The FPD segment offers custom and pre-configured pumps and pump systems, mechanical seals, auxiliary systems, replacement parts, upgrades, and related aftermarket services; and equipment services, including installation and commissioning services, seal systems spare parts, repairs, advanced diagnostics, re-rate and upgrade solutions, retrofit programs, and machining and asset management solutions, as well as manufactures a gas-lubricated mechanical seal for use in high-speed compressors for gas pipelines and in the oil and gas production and process markets.