Tenaris S.A. (NYSE:TS) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Analysts have given Tenaris S.A. an average recommendation of "Hold", with ratings varying from sell to buy.
• The stock has a twelve-month price target average of $43.20, indicating potential for growth based on analyst expectations.
• Tenaris has initiated a $1.20 billion stock repurchase plan, suggesting that the company's leadership views its shares as undervalued.

Tenaris S.A. (NYSE:TS - Get Free Report) has received a consensus recommendation of "Hold" from the nine analysts that are currently covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, one has issued a hold recommendation and six have assigned a buy recommendation to the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $43.20.

A number of brokerages have recently commented on TS. Wall Street Zen cut Tenaris from a "buy" rating to a "hold" rating in a research report on Sunday, July 13th. Sanford C. Bernstein began coverage on Tenaris in a research report on Monday, July 21st. They issued an "outperform" rating on the stock. Barclays dropped their price target on Tenaris from $48.00 to $46.00 and set an "overweight" rating on the stock in a research report on Thursday, August 7th. Finally, Piper Sandler dropped their price target on Tenaris from $50.00 to $48.00 and set an "overweight" rating on the stock in a research report on Thursday, August 14th.

Institutional Investors Weigh In On Tenaris

A number of hedge funds have recently added to or reduced their stakes in the stock. Alua Capital Management LP acquired a new stake in Tenaris in the first quarter valued at approximately $93,370,000. Encompass Capital Advisors LLC increased its holdings in shares of Tenaris by 90.7% during the first quarter. Encompass Capital Advisors LLC now owns 2,097,540 shares of the industrial products company's stock valued at $82,035,000 after acquiring an additional 997,540 shares in the last quarter. Millennium Management LLC increased its holdings in shares of Tenaris by 38.2% during the fourth quarter. Millennium Management LLC now owns 2,816,728 shares of the industrial products company's stock valued at $106,444,000 after acquiring an additional 778,021 shares in the last quarter. Sourcerock Group LLC increased its holdings in shares of Tenaris by 25.9% during the second quarter. Sourcerock Group LLC now owns 3,086,075 shares of the industrial products company's stock valued at $115,419,000 after acquiring an additional 635,817 shares in the last quarter. Finally, Merewether Investment Management LP acquired a new position in shares of Tenaris during the fourth quarter valued at about $20,271,000. 10.45% of the stock is currently owned by hedge funds and other institutional investors.

Tenaris Trading Down 0.5%

Tenaris stock traded down $0.18 during trading hours on Wednesday, hitting $35.85. 1,252,491 shares of the stock traded hands, compared to its average volume of 1,751,439. The firm's 50-day moving average price is $36.46 and its two-hundred day moving average price is $35.73. The company has a market cap of $20.84 billion, a PE ratio of 9.74, a PEG ratio of 2.70 and a beta of 1.39. Tenaris has a one year low of $28.17 and a one year high of $40.87.

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

Tenaris declared that its Board of Directors has authorized a share repurchase program on Tuesday, May 27th that permits the company to repurchase $1.20 billion in shares. This repurchase authorization permits the industrial products company to repurchase up to 6.2% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's leadership believes its shares are undervalued.

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.