TechnipFMC (NYSE:FTI) Shares Down 7.1% - Here's Why

Key Points

• TechnipFMC shares fell 7.1% in Wednesday trading, dropping to as low as $66.10 after closing at $71.41 the prior day. Trading volume was also sharply lighter than usual, about 1.15 million shares versus an average of 3.91 million.
• Despite the stock pullback, Wall Street sentiment remains mostly positive: analysts such as Piper Sandler, Evercore, Susquehanna, and RBC raised or reiterated bullish ratings, and the consensus price target is $69.00 with a “Moderate Buy” rating.
• The company recently beat earnings estimates with Q1 EPS of $0.64 versus $0.57 expected, though revenue came in slightly below forecasts at $2.49 billion. TechnipFMC also announced a quarterly dividend of $0.05 per share, and insiders have sold a meaningful amount of stock in recent months.

Shares of TechnipFMC plc (NYSE:FTI - Get Free Report) dropped 7.1% during mid-day trading on Wednesday . The company traded as low as $66.10 and last traded at $66.3710. Approximately 1,150,338 shares traded hands during trading, a decline of 71% from the average daily volume of 3,910,235 shares. The stock had previously closed at $71.41.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the stock. Piper Sandler lifted their target price on shares of TechnipFMC from $70.00 to $80.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 15th. Evercore reissued an "outperform" rating and set a $83.00 price target on shares of TechnipFMC in a report on Friday, May 1st. HSBC cut shares of TechnipFMC from a "buy" rating to a "hold" rating and lifted their price target for the company from $49.00 to $62.00 in a research report on Friday, February 20th. Susquehanna boosted their target price on shares of TechnipFMC from $83.00 to $90.00 and gave the stock a "positive" rating in a research report on Friday, May 1st. Finally, Royal Bank Of Canada lifted their price objective on TechnipFMC from $78.00 to $80.00 and gave the stock an "outperform" rating in a report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $69.00.

TechnipFMC Stock Performance

The company has a quick ratio of 0.88, a current ratio of 1.13 and a debt-to-equity ratio of 0.13. The stock has a market cap of $26.69 billion, a P/E ratio of 25.60, a PEG ratio of 1.53 and a beta of 0.74. The stock has a fifty day simple moving average of $71.46 and a 200-day simple moving average of $58.95.

TechnipFMC (NYSE:FTI - Get Free Report) last issued its earnings results on Thursday, April 30th. The oil and gas company reported $0.64 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.57 by $0.07. The firm had revenue of $2.49 billion for the quarter, compared to analysts' expectations of $2.52 billion. TechnipFMC had a return on equity of 34.06% and a net margin of 10.62%.The company's revenue was up 11.6% compared to the same quarter last year. During the same quarter last year, the business earned $0.33 earnings per share. Equities analysts expect that TechnipFMC plc will post 2.98 earnings per share for the current fiscal year.

TechnipFMC Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 3rd. Investors of record on Tuesday, May 19th will be given a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend is Tuesday, May 19th. TechnipFMC's dividend payout ratio (DPR) is currently 7.63%.

Insiders Place Their Bets

In related news, CAO David Light sold 6,622 shares of TechnipFMC stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $62.43, for a total value of $413,411.46. Following the sale, the chief accounting officer owned 5,005 shares of the company's stock, valued at approximately $312,462.15. This trade represents a 56.95% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Jonathan Landes sold 116,194 shares of TechnipFMC stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $62.20, for a total value of $7,227,266.80. Following the completion of the sale, the insider directly owned 71,356 shares in the company, valued at approximately $4,438,343.20. This represents a 61.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,210,092 shares of company stock worth $75,347,124 in the last 90 days. Company insiders own 1.40% of the company's stock.

Institutional Investors Weigh In On TechnipFMC

Hedge funds and other institutional investors have recently bought and sold shares of the company. V Square Quantitative Management LLC acquired a new stake in TechnipFMC in the 1st quarter valued at approximately $26,000. Ascentis Independent Advisors acquired a new stake in TechnipFMC in the 1st quarter valued at approximately $37,000. Harbor Investment Advisory LLC acquired a new stake in TechnipFMC in the 4th quarter valued at approximately $32,000. First Pacific Financial bought a new position in TechnipFMC in the first quarter valued at approximately $52,000. Finally, Newbridge Financial Services Group Inc. bought a new position in TechnipFMC in the third quarter valued at approximately $32,000. Institutional investors and hedge funds own 96.58% of the company's stock.

TechnipFMC Company Profile

TechnipFMC is an integrated oilfield services and technology company that designs, manufactures and delivers systems and services for the energy industry. The company's activities span the full lifecycle of oil and gas projects, with capabilities in subsea production systems, surface wellhead and intervention equipment, and onshore/offshore engineering and construction. TechnipFMC combines engineering and project management with fabrication, installation and maintenance services to help operators develop and produce hydrocarbon resources.

Its product and service portfolio includes subsea hardware such as trees, manifolds, umbilicals, risers and flowlines, as well as surface equipment for drilling, completions and well intervention.

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