Tenaris (NYSE:TS) Downgraded by Piper Sandler to "Neutral"

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 Piper Sandler from an "overweight" rating to a "neutral" rating in a research report issued on Wednesday, Marketbeat reports. They presently 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 price target indicates a potential upside of 17.24% from the company's previous close.

A number of other research firms have also weighed in on TS. Barclays cut their target price 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. Sanford C. Bernstein started coverage on Tenaris in a research report on Monday, July 21st. They set an "outperform" rating on the stock. Finally, Wall Street Zen lowered Tenaris from a "buy" rating to a "hold" rating in a research report on Sunday, July 13th. Five research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $41.80.

Tenaris Trading Down 0.4%

NYSE:TS traded down $0.15 during trading hours on Wednesday, hitting $34.97. The company had a trading volume of 1,531,192 shares, compared to its average volume of 1,787,189. The company has a 50-day moving average of $36.17 and a 200 day moving average of $35.69. The company has a market cap of $20.33 billion, a P/E ratio of 9.50, a P/E/G ratio of 2.64 and a beta of 1.39. Tenaris has a 1 year low of $29.16 and a 1 year high of $40.87.

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

Tenaris announced that its Board of Directors has authorized a share repurchase program on Tuesday, May 27th that authorizes the company to buyback $1.20 billion in outstanding shares. This buyback authorization authorizes the industrial products company to purchase up to 6.2% of its stock through open market purchases. Stock buyback programs are often a sign that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On Tenaris

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. MGO One Seven LLC boosted its stake 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 acquiring an additional 302 shares in the last quarter. PNC Financial Services Group Inc. boosted its stake 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 acquiring an additional 308 shares in the last quarter. Rhumbline Advisers boosted its stake 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 acquiring an additional 338 shares in the last quarter. Russell Investments Group Ltd. lifted its holdings in shares of Tenaris by 10.6% in the first quarter. Russell Investments Group Ltd. now owns 3,636 shares of the industrial products company's stock valued at $142,000 after purchasing an additional 347 shares in the last quarter. Finally, Blue Trust Inc. lifted its holdings in shares of Tenaris by 48.8% in the second quarter. Blue Trust Inc. now owns 1,088 shares of the industrial products company's stock valued at $41,000 after purchasing an additional 357 shares in the last quarter. 10.45% of the stock is owned by institutional investors.

Tenaris Company Profile

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.