TechnipFMC (NYSE:FTI) Shares Up 8.7% on Strong Earnings

Key Points

• TechnipFMC shares surged 8.7% following a quarterly earnings report, with earnings per share at $0.75, surpassing estimates of $0.65, and a year-over-year revenue increase of 12.7% to $2.65 billion.
• The company announced a quarterly dividend of $0.05 per share, highlighting a low dividend payout ratio of 9.43% and a yield of 0.5%.
• TechnipFMC's board approved a $2.00 billion stock repurchase plan, indicating the belief that the company's stock is undervalued amidst recent insider selling activity.

TechnipFMC plc (NYSE:FTI - Get Free Report) shares shot up 8.7% on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $40.04 and last traded at $40.78. 902,123 shares traded hands during mid-day trading, a decline of 81% from the average session volume of 4,698,540 shares. The stock had previously closed at $37.51.

The oil and gas company reported $0.75 earnings per share for the quarter, beating the consensus estimate of $0.65 by $0.10. TechnipFMC had a return on equity of 29.42% and a net margin of 9.60%.The firm had revenue of $2.65 billion during the quarter, compared to the consensus estimate of $2.60 billion. During the same period last year, the company earned $0.64 earnings per share. The company's revenue was up 12.7% on a year-over-year basis. TechnipFMC has set its FY 2025 guidance at EPS.

TechnipFMC Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, December 3rd. Stockholders of record on Tuesday, November 18th will be issued 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%.

TechnipFMC announced that its board has approved a stock repurchase plan on Wednesday, October 22nd that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the oil and gas company to purchase up to 13.3% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several research firms recently commented on FTI. Barclays increased their price objective on TechnipFMC from $45.00 to $51.00 and gave the company an "overweight" rating in a research report on Friday, July 25th. Wall Street Zen raised TechnipFMC from a "hold" rating to a "buy" rating in a research report on Saturday, October 4th. BNP Paribas Exane raised TechnipFMC from a "neutral" rating to an "outperform" rating and set a $47.00 price objective on the stock in a research report on Friday, October 10th. Susquehanna increased their price objective on TechnipFMC from $40.00 to $45.00 and gave the company a "positive" rating in a research report on Friday, July 25th. Finally, Citigroup reissued a "buy" rating and issued a $41.00 target price (up from $35.00) on shares of TechnipFMC in a research report on Thursday, July 10th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $41.93.

Insider Buying and Selling

In other news, CEO Douglas J. Pferdehirt sold 632,539 shares of TechnipFMC stock in a transaction dated Monday, September 22nd. The stock was sold at an average price of $38.62, for a total transaction of $24,428,656.18. Following the transaction, the chief executive officer directly owned 2,917,054 shares of the company's stock, valued at $112,656,625.48. The trade was a 17.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Alf Melin sold 113,760 shares of TechnipFMC stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $38.61, for a total value of $4,392,273.60. Following the transaction, the chief financial officer directly owned 241,140 shares in the company, valued at approximately $9,310,415.40. The trade was a 32.05% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 885,984 shares of company stock valued at $34,180,811 in the last 90 days. Corporate insiders own 1.80% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Securian Asset Management Inc. purchased a new position in shares of TechnipFMC during the 3rd quarter valued at about $1,214,000. ANB Bank purchased a new position in shares of TechnipFMC during the 3rd quarter valued at about $202,000. Cerity Partners LLC lifted its position in shares of TechnipFMC by 35.0% during the 3rd quarter. Cerity Partners LLC now owns 537,128 shares of the oil and gas company's stock valued at $21,190,000 after buying an additional 139,169 shares in the last quarter. Louisiana State Employees Retirement System purchased a new position in shares of TechnipFMC during the 3rd quarter valued at about $4,513,000. Finally, McIlrath & Eck LLC raised its stake in TechnipFMC by 476.3% during the 3rd quarter. McIlrath & Eck LLC now owns 1,239 shares of the oil and gas company's stock valued at $49,000 after purchasing an additional 1,024 shares during the period. 96.58% of the stock is owned by hedge funds and other institutional investors.

TechnipFMC Price Performance

The firm has a 50 day moving average of $37.75 and a 200-day moving average of $33.77. The company has a market cap of $16.23 billion, a P/E ratio of 18.85, a P/E/G ratio of 1.07 and a beta of 1.04. The company has a current ratio of 1.10, a quick ratio of 0.86 and a debt-to-equity ratio of 0.15.

TechnipFMC Company Profile

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.

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