Tenaris S.A. (NYSE:TS) Sees Large Increase in Short Interest

Key Points

• Tenaris S.A. experienced a dramatic 1,871.1% increase in short interest in July, rising to 3,550,000 shares from 180,100 shares at the end of June.
• The company's stock price is currently down 1.0%, trading at $34.61, with a market cap of $20.12 billion and an earnings per share (EPS) of $0.99 for its latest quarter.
• Tenaris has announced a $1.20 billion stock repurchase plan, indicating the board's belief that the company's shares are undervalued.

Tenaris S.A. (NYSE:TS - Get Free Report) was the recipient of a significant growth in short interest in July. As of July 15th, there was short interest totaling 3,550,000 shares, agrowthof1,871.1% from the June 30th total of 180,100 shares. Based on an average trading volume of 1,570,000 shares, the days-to-cover ratio is presently 2.3 days. Approximately0.7% of the shares of the company are sold short. Approximately0.7% of the shares of the company are sold short. Based on an average trading volume of 1,570,000 shares, the days-to-cover ratio is presently 2.3 days.

Wall Street Analysts Forecast Growth

TS has been the subject of a number of research reports. Sanford C. Bernstein assumed coverage on shares of Tenaris in a report on Monday, July 21st. They issued an "outperform" rating for the company. Stifel Nicolaus reduced their price target on shares of Tenaris from $43.00 to $41.00 and set a "buy" rating for the company in a research report on Tuesday, April 15th. Wall Street Zen downgraded shares of Tenaris from a "buy" rating to a "hold" rating in a report on Sunday, July 13th. Barclays set a $48.00 price target on shares of Tenaris and gave the stock an "overweight" rating in a report on Tuesday, May 6th. Finally, Morgan Stanley reduced their price target on shares of Tenaris from $35.00 to $34.00 and set an "underweight" rating on the stock in a research report on Friday, May 16th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $44.00.

Tenaris Price Performance

Shares of TS stock traded up $1.28 during trading hours on Tuesday, reaching $35.95. 1,037,958 shares of the company traded hands, compared to its average volume of 1,612,613. The firm has a 50-day moving average price of $36.52 and a 200 day moving average price of $36.27. Tenaris has a 12-month low of $27.37 and a 12-month high of $40.87. The company has a market cap of $20.90 billion, a P/E ratio of 9.74, a P/E/G ratio of 2.62 and a beta of 1.34.

Tenaris (NYSE:TS - Get Free Report) last released its earnings results on Wednesday, July 30th. The industrial products company reported $0.99 earnings per share for the quarter, beating the consensus estimate of $0.88 by $0.11. The firm had revenue of $3.09 billion for the quarter, compared to the consensus estimate of $3 billion. Tenaris had a return on equity of 11.71% and a net margin of 17.02%. The company's revenue for the quarter was down 7.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.59 EPS. Sell-side analysts predict that Tenaris will post 3.14 EPS 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 shares. This buyback authorization authorizes the industrial products company to repurchase up to 6.2% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

Institutional Investors Weigh In On Tenaris

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Brooklyn Investment Group raised its position in Tenaris by 169.5% during the first quarter. Brooklyn Investment Group now owns 717 shares of the industrial products company's stock valued at $28,000 after acquiring an additional 451 shares in the last quarter. Ameritas Advisory Services LLC purchased a new position in Tenaris during the second quarter valued at approximately $28,000. Harbour Investments Inc. purchased a new position in Tenaris during the first quarter valued at approximately $39,000. Blue Trust Inc. grew its holdings in 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 during the period. Finally, Headlands Technologies LLC acquired a new stake in shares of Tenaris in the fourth quarter worth approximately $42,000. 10.45% of the stock is currently owned by hedge funds and other 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.