Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Revealing a significant insider sell on May 23, Scott Robert Rowe, President & CEO at Flowserve (NYSE:FLS), as per the latest SEC filing.
What Happened: Rowe's decision to sell 100,000 shares of Flowserve was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $4,955,187.
The latest update on Friday morning shows Flowserve shares down by 0.0%, trading at $48.86.
Get to Know Flowserve Better Flowserve Corp is a manufacturer and aftermarket service provider of comprehensive flow control systems. It develops precision-engineered flow control equipment to monitor movement and protect customers' materials and processes. It offers an extensive range of pumps, valves, seals, and services for several industries, including oil and gas, chemical, power generation, and water management. In addition, Flowserve has a network of Quick Response Centers to provide aftermarket equipment services. The aftermarket services help customers with installation, diagnostics, repair, and retrofitting. Sales are roughly split across many regions, with North America and Europe contributing the majority of total revenue.
Financial Milestones: Flowserve's Journey Revenue Growth: Flowserve's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 10.93%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Exploring Profitability:
- Gross Margin: The company shows a low gross margin of 31.17%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
- Earnings per Share (EPS): Flowserve's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.56.
Assessing Valuation Metrics:
- Price to Earnings (P/E) Ratio: The P/E ratio of 27.45 is lower than the industry average, implying a discounted valuation for Flowserve's stock.
- Price to Sales (P/S) Ratio: The P/S ratio of 1.46 is lower than the industry average, implying a discounted valuation for Flowserve's stock in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Flowserve's EV/EBITDA ratio at 16.69 suggests potential undervaluation, falling below industry averages.
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Unmasking the Significance of Insider Transactions Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
The Insider's Guide to Important Transaction Codes Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Flowserve's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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