Goldman Sachs Maintains Flowserve (FLS) Sell Recommendation

Fintel reports that on August 3, 2023, Goldman Sachs maintained coverage of Flowserve (NYSE:FLS) with a Sell recommendation.

Analyst Price Forecast Suggests 6.57% Upside

As of August 2, 2023, the average one-year price target for Flowserve is 41.62. The forecasts range from a low of 34.34 to a high of $51.45. The average price target represents an increase of 6.57% from its latest reported closing price of 39.05.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Flowserve is 3,928MM, a decrease of 1.12%. The projected annual non-GAAP EPS is 1.73.

Flowserve Declares $0.20 Dividend

On May 31, 2023 the company declared a regular quarterly dividend of $0.20 per share ($0.80 annualized). Shareholders of record as of June 23, 2023 received the payment on July 7, 2023. Previously, the company paid $0.20 per share.

At the current share price of $39.05 / share, the stock’s dividend yield is 2.05%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.19%, the lowest has been 1.38%, and the highest has been 4.16%. The standard deviation of yields is 0.52 (n=235).

The current dividend yield is 0.27 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.44. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

What is the Fund Sentiment?

There are 653 funds or institutions reporting positions in Flowserve. This is an increase of 25 owner(s) or 3.98% in the last quarter. Average portfolio weight of all funds dedicated to FLS is 0.26%, an increase of 4.10%. Total shares owned by institutions decreased in the last three months by 2.88% to 154,609K shares. The put/call ratio of FLS is 0.11, indicating a bullish outlook.

What are Other Shareholders Doing?

First Eagle Investment Management holds 11,020K shares representing 8.40% ownership of the company. In its prior filing, the firm reported owning 11,009K shares, representing an increase of 0.10%. The firm increased its portfolio allocation in FLS by 6.56% over the last quarter.

Wellington Management Group Llp holds 10,383K shares representing 7.92% ownership of the company. In its prior filing, the firm reported owning 10,908K shares, representing a decrease of 5.06%. The firm increased its portfolio allocation in FLS by 4.25% over the last quarter.

SGENX – First Eagle Global Fund holds 7,892K shares representing 6.02% ownership of the company. No change in the last quarter.

Beutel, Goodman & Co holds 6,576K shares representing 5.01% ownership of the company. In its prior filing, the firm reported owning 6,419K shares, representing an increase of 2.40%. The firm increased its portfolio allocation in FLS by 10.24% over the last quarter.

Harris Associates L P holds 6,061K shares representing 4.62% ownership of the company. In its prior filing, the firm reported owning 6,495K shares, representing a decrease of 7.16%. The firm decreased its portfolio allocation in FLS by 1.41% over the last quarter.

Flowserve Background Information
(This description is provided by the company.)

Flowserve Corp. is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 50 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services.

This article originally appeared on Fintel

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