Tenaris (NYSE:TS) Cut to "Neutral" at Piper Sandler

Key Points

• Tenaris was downgraded by Piper Sandler from an "overweight" to a "neutral" rating, with a target price set at $41.00, indicating a potential upside of 12.98% from its previous close.
• The company's stock has shown a year-over-year revenue decline of 7.1%, despite beating earnings per share estimates for the most recent quarter.
• Tenaris has initiated a $1.20 billion stock repurchase program, suggesting that the company believes its shares are undervalued.

Tenaris (NYSE:TS - Get Free Report) was downgraded by equities researchers at Piper Sandler from an "overweight" rating to a "neutral" rating in a research report issued to clients and investors on Wednesday, MarketBeat.com reports. They currently have a $41.00 price objective on the industrial products company's stock, down from their previous price objective of $48.00. Piper Sandler's target price suggests a potential upside of 16.74% from the company's previous close.

Several other analysts have also recently weighed in on TS. Barclays decreased their price objective on shares of Tenaris from $48.00 to $46.00 and set an "overweight" rating on the stock in a research note on Thursday, August 7th. Wall Street Zen cut shares of Tenaris from a "buy" rating to a "hold" rating in a research note on Sunday, July 13th. Finally, Sanford C. Bernstein started coverage on shares of Tenaris in a research note on Monday, July 21st. They set an "outperform" rating on the stock. Five research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, Tenaris has a consensus rating of "Hold" and a consensus target price of $41.80.

Tenaris Stock Performance

Tenaris stock traded down $0.21 during trading hours on Wednesday, hitting $35.12. 1,194,561 shares of the stock were exchanged, compared to its average volume of 1,776,853. The stock has a market capitalization of $20.42 billion, a P/E ratio of 9.54, a P/E/G ratio of 2.66 and a beta of 1.39. Tenaris has a 12 month low of $29.16 and a 12 month high of $40.87. The business's 50-day moving average is $36.24 and its two-hundred day moving average is $35.71.

Tenaris (NYSE:TS - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The industrial products company reported $0.99 earnings per share for the quarter, topping the consensus estimate of $0.88 by $0.11. The firm had revenue of $3.09 billion for the quarter, compared to analysts' expectations of $3 billion. Tenaris had a net margin of 17.02% and a return on equity of 11.71%. The company's quarterly revenue was down 7.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.59 earnings per share. On average, equities analysts predict that Tenaris will post 3.14 earnings per share for the current fiscal year.

Tenaris declared that its board has authorized a share repurchase plan on Tuesday, May 27th that allows the company to repurchase $1.20 billion in shares. This repurchase authorization allows the industrial products company to reacquire up to 6.2% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's management believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. MGO One Seven LLC boosted its holdings in shares of Tenaris by 5.4% during the 2nd quarter. MGO One Seven LLC now owns 5,940 shares of the industrial products company's stock worth $222,000 after buying an additional 302 shares during the period. PNC Financial Services Group Inc. boosted its holdings in shares of Tenaris by 4.0% during the 1st quarter. PNC Financial Services Group Inc. now owns 8,088 shares of the industrial products company's stock worth $316,000 after buying an additional 308 shares during the period. Rhumbline Advisers boosted its holdings in shares of Tenaris by 4.2% during the 2nd quarter. Rhumbline Advisers now owns 8,387 shares of the industrial products company's stock worth $314,000 after buying an additional 338 shares during the period. Russell Investments Group Ltd. raised its stake in Tenaris by 10.6% in the 1st quarter. Russell Investments Group Ltd. now owns 3,636 shares of the industrial products company's stock worth $142,000 after purchasing an additional 347 shares in the last quarter. Finally, Blue Trust Inc. raised its stake in Tenaris by 48.8% in the 2nd quarter. Blue Trust Inc. now owns 1,088 shares of the industrial products company's stock worth $41,000 after purchasing an additional 357 shares in the last quarter. 10.45% of the stock is currently owned by institutional investors and hedge funds.

About Tenaris

Tenaris SA, together with its subsidiaries, produces and sells seamless and welded steel tubular products and related services for the oil and gas industry, and other industrial applications. The company offers steel casings, tubing products, mechanical and structural pipes, line pipes, cold-drawn pipes, and premium joints and couplings; and coiled tubing products for oil and gas drilling and workovers, and subsea pipelines.