Flowserve (NYSE:FLS) Stock Price Crosses Below 50-Day Moving Average - Should You Sell?

Key Points

• Flowserve shares fell below their 50-day moving average, trading as low as $72.98 versus the $76.35 average, with the stock last at $73.78.
• Analyst sentiment remains positive overall, with seven Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $86.60, although TD Cowen downgraded the stock and cut its target to $70.
• Flowserve exceeded quarterly earnings expectations with $0.95 EPS and $1.17 billion in revenue, announced a $0.22 quarterly dividend, and has substantial institutional ownership at 93.93%.

Flowserve Corporation (NYSE:FLS - Get Free Report) shares passed below its 50-day moving average during trading on Friday. The stock has a 50-day moving average of $76.35 and traded as low as $72.98. Flowserve shares last traded at $73.78, with a volume of 2,307,425 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on FLS shares. TD Cowen lowered Flowserve from a "buy" rating to a "hold" rating and dropped their price target for the stock from $85.00 to $70.00 in a research note on Wednesday, June 24th. Weiss Ratings upgraded Flowserve from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, September 8th. The Goldman Sachs Group set a $82.00 price objective on Flowserve in a report on Thursday, July 30th. Robert W. Baird set a $93.00 target price on Flowserve in a research report on Friday, July 31st. Finally, Royal Bank Of Canada upped their target price on Flowserve from $91.00 to $94.00 and gave the stock an "outperform" rating in a research note on Friday, July 31st. Seven equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, Flowserve presently has an average rating of "Moderate Buy" and a consensus target price of $86.60.

Flowserve Stock Performance

The stock has a market cap of $9.38 billion, a PE ratio of 25.89, a P/E/G ratio of 1.69 and a beta of 1.25. The company has a fifty day moving average price of $76.35 and a 200 day moving average price of $75.54. The company has a quick ratio of 1.58, a current ratio of 2.15 and a debt-to-equity ratio of 0.91.

Flowserve (NYSE:FLS - Get Free Report) last issued its earnings results on Wednesday, July 29th. The industrial products company reported $0.95 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.09. The company had revenue of $1.17 billion during the quarter, compared to analysts' expectations of $1.16 billion. Flowserve had a return on equity of 21.42% and a net margin of 8.01%.Flowserve's quarterly revenue was down 1.6% compared to the same quarter last year. During the same period in the prior year, the business posted $0.91 EPS. Flowserve has set its FY 2026 guidance at 4.050-4.200 EPS. Analysts expect that Flowserve Corporation will post 4.1 earnings per share for the current year.

Flowserve Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Friday, September 25th will be issued a $0.22 dividend. The ex-dividend date is Friday, September 25th. This represents a $0.88 annualized dividend and a dividend yield of 1.2%. Flowserve's dividend payout ratio (DPR) is currently 30.88%.

Institutional Investors Weigh In On Flowserve

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of Flowserve in the second quarter valued at about $999,631,000. PointState Capital LP purchased a new stake in shares of Flowserve during the 2nd quarter valued at approximately $196,837,000. Bank of New York Mellon Corp lifted its holdings in Flowserve by 5.1% in the first quarter. Bank of New York Mellon Corp now owns 2,448,977 shares of the industrial products company's stock valued at $180,024,000 after acquiring an additional 118,254 shares during the last quarter. Bank of America Corp DE purchased a new position in Flowserve in the second quarter worth approximately $144,400,000. Finally, Norges Bank acquired a new stake in Flowserve during the fourth quarter worth $117,964,000. 93.93% of the stock is currently owned by institutional investors.

Flowserve Company Profile

Flowserve Corp. is an industrial manufacturer that designs, manufactures and services flow-control equipment used to move, control and protect fluids in industrial processes. Its product portfolio includes engineered and industrial pumps, valves, mechanical seals, aftermarket parts and related services.

The company serves customers across energy, chemical processing, water, mining, pharmaceutical, power generation and other general industrial markets. Its equipment is used in applications such as oil and gas production, refining, pipeline transportation, power generation and industrial water treatment.

Flowserve traces its corporate heritage to businesses established in the late 18th century and was formed in its current structure through the combination of established pump and flow-control companies.

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