Zacks Investment Research downgraded shares of Flowserve (NYSE:FLS) from a buy rating to a hold rating in a report published on Tuesday.

According to Zacks, “We believe that Flowserve is well positioned to benefit from strengthening end markets as well as realignment and transformational initiatives in the long run. Also, the combined businesses of Engineered Product Division and Industrial Product Division will enable the company to better control its operations and serve its customers in the global pumps market. For 2018 (results not yet released), Flowserve anticipates earnings to be $1.65-$1.75, higher than the earlier $1.50-$1.70. Revenues are anticipated to increase 5-7% from 3-6% mentioned earlier. However, in the past three months, the company's shares have underperformed the industry and look overvalued comparatively. Also, expenses related to restructuring initiatives as well as high debt levels can be worrying for the company. Further, divested businesses are estimated to have 1% sales headwind in 2018.”

Other equities research analysts have also issued research reports about the stock. Royal Bank of Canada boosted their price target on shares of Flowserve to $50.00 and gave the company an average rating in a report on Friday, November 9th. They noted that the move was a valuation call. Northcoast Research upgraded shares of Flowserve from a neutral rating to a buy rating in a report on Thursday, September 13th. Stifel Nicolaus boosted their price target on shares of Flowserve from $47.00 to $52.00 and gave the company a hold rating in a report on Monday, October 8th. Vertical Research upgraded shares of Flowserve from a sell rating to a hold rating and set a $43.00 price target on the stock in a report on Friday, December 14th. Finally, ValuEngine lowered shares of Flowserve from a buy rating to a hold rating in a report on Thursday, December 13th. One investment analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and two have issued a buy rating to the company’s stock. The stock presently has an average rating of Hold and an average price target of $49.92.

Shares of FLS stock traded down $0.22 during midday trading on Tuesday, reaching $41.41. 16,333 shares of the company were exchanged, compared to its average volume of 1,377,409. Flowserve has a 12 month low of $35.88 and a 12 month high of $56.86. The company has a market capitalization of $5.34 billion, a price-to-earnings ratio of 30.45, a price-to-earnings-growth ratio of 0.93 and a beta of 1.63. The company has a current ratio of 2.24, a quick ratio of 1.60 and a debt-to-equity ratio of 0.88.

Flowserve (NYSE:FLS) last released its earnings results on Wednesday, November 7th. The industrial products company reported $0.49 EPS for the quarter, topping analysts’ consensus estimates of $0.42 by $0.07. Flowserve had a negative net margin of 1.27% and a positive return on equity of 11.66%. The business had revenue of $952.72 million for the quarter, compared to the consensus estimate of $925.33 million. During the same period in the previous year, the firm earned $0.37 EPS. The business’s revenue for the quarter was up 7.8% on a year-over-year basis. On average, equities research analysts predict that Flowserve will post 1.75 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 18th. Investors of record on Friday, January 4th will be given a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a yield of 1.84%. The ex-dividend date is Thursday, January 3rd. Flowserve’s payout ratio is presently 55.88%.

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Girard Partners LTD. bought a new stake in Flowserve in the third quarter worth approximately $101,000. Zurich Insurance Group Ltd FI bought a new stake in shares of Flowserve during the 2nd quarter worth $131,000. Point72 Hong Kong Ltd bought a new stake in shares of Flowserve during the 2nd quarter worth $163,000. Tower Research Capital LLC TRC bought a new stake in shares of Flowserve during the 2nd quarter worth $174,000. Finally, Ibex Investors LLC bought a new stake in shares of Flowserve during the 3rd quarter worth $203,000.

Flowserve Company Profile

Flowserve Corporation designs, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally. The company operates through three segments: Engineered Product Division (EPD), Industrial Product Division (IPD), and Flow Control Division (FCD).

Further Reading: Net Asset Value

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