Stock Buyback Plan Approved by TechnipFMC (NYSE:FTI) Board of Directors

Key Points

• TechnipFMC's board has approved a significant $2 billion stock buyback plan, allowing the company to repurchase up to 13% of its outstanding shares, suggesting the board's belief that the stock is undervalued.
• The company reported $0.75 earnings per share for the recent quarter, exceeding analysts' expectations of $0.65, with a revenue increase of 12.7% year-over-year to $2.65 billion.
• A quarterly dividend of $0.05 per share has been announced, indicating a dividend yield of 0.5% and a low dividend payout ratio of 9.43% among stockholders.

TechnipFMC (NYSE:FTI - Get Free Report) announced that its board has approved a stock buyback plan on Thursday, October 23rd, RTT News reports. The company plans to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the oil and gas company to repurchase up to 13% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

TechnipFMC Trading Up 8.9%

NYSE:FTI traded up $3.32 during midday trading on Thursday, reaching $40.83. 11,642,139 shares of the stock traded hands, compared to its average volume of 4,043,840. The company has a fifty day moving average of $37.86 and a 200 day moving average of $33.89. TechnipFMC has a 12 month low of $22.11 and a 12 month high of $41.35. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.86 and a current ratio of 1.10. The stock has a market capitalization of $16.78 billion, a P/E ratio of 19.26, a PEG ratio of 1.10 and a beta of 1.04.

TechnipFMC (NYSE:FTI - Get Free Report) last released its earnings results on Thursday, October 23rd. The oil and gas company reported $0.75 earnings per share for the quarter, topping analysts' consensus estimates of $0.65 by $0.10. TechnipFMC had a net margin of 9.60% and a return on equity of 29.42%. The firm had revenue of $2.65 billion for the quarter, compared to the consensus estimate of $2.60 billion. During the same period in the prior year, the firm earned $0.64 EPS. The company's revenue was up 12.7% compared to the same quarter last year. TechnipFMC has set its FY 2025 guidance at EPS. On average, research analysts predict that TechnipFMC will post 1.63 EPS for the current year.

TechnipFMC Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 3rd. Stockholders of record on Tuesday, November 18th will be given a dividend of $0.05 per share. The ex-dividend date is Tuesday, November 18th. This represents a $0.20 annualized dividend and a dividend yield of 0.5%. TechnipFMC's dividend payout ratio (DPR) is presently 9.43%.

Wall Street Analyst Weigh In

FTI has been the topic of a number of recent analyst reports. Weiss Ratings reissued a "buy (b)" rating on shares of TechnipFMC in a research report on Wednesday, October 8th. Citigroup reissued a "buy" rating and issued a $41.00 price objective (up previously from $35.00) on shares of TechnipFMC in a report on Thursday, July 10th. Piper Sandler set a $48.00 price objective on shares of TechnipFMC and gave the stock an "overweight" rating in a research report on Tuesday, October 14th. Wall Street Zen raised shares of TechnipFMC from a "hold" rating to a "buy" rating in a research note on Saturday, October 4th. Finally, Susquehanna increased their price objective on shares of TechnipFMC from $40.00 to $45.00 and gave the stock a "positive" rating in a research report on Friday, July 25th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Buy" and a consensus target price of $41.93.

Insider Buying and Selling at TechnipFMC

In other news, insider Thierry Conti sold 50,000 shares of the business's stock in a transaction dated Monday, September 22nd. The stock was sold at an average price of $38.64, for a total transaction of $1,932,000.00. Following the sale, the insider owned 56,352 shares in the company, valued at approximately $2,177,441.28. The trade was a 47.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Rousset Sophie Zurquiyah sold 9,381 shares of the company's stock in a transaction that occurred on Friday, July 25th. The stock was sold at an average price of $37.12, for a total value of $348,222.72. Following the completion of the sale, the director owned 62,978 shares in the company, valued at approximately $2,337,743.36. This represents a 12.96% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 885,984 shares of company stock valued at $34,180,811. 1.80% of the stock is owned by company insiders.

About TechnipFMC

TechnipFMC plc engages in the energy projects, technologies, and systems and services businesses in Europe, Central Asia, North America, Latin America, the Asia Pacific, Africa, the Middle East, and internationally. It operates through two segments: Subsea and Surface Technologies. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.