Thomas Okray, Board Member at Flowserve FLS, reported an insider buy on May 19, according to a new SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled that Okray made a notable purchase of 3,099 shares of Flowserve, valuing at $159,970.
At Tuesday morning, Flowserve shares are down by 0.0%, trading at $51.37.
All You Need to Know About Flowserve
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. It has three business segments: FPD for custom engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and related services; and FCD for engineered-to-order and configured-to-order isolation values, control valves, valve automation products and related equipment and Eliminations and All Other.
Flowserve: Delving into Financials
Revenue Growth: Over the 3 months period, Flowserve showcased positive performance, achieving a revenue growth rate of 5.25% as of 31 March, 2025. This reflects a substantial increase in the company’s top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.
Key Insights into Profitability Metrics:
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Gross Margin: The company shows a low gross margin of 32.27%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
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Earnings per Share (EPS): With an EPS below industry norms, Flowserve exhibits below-average bottom-line performance with a current EPS of 0.56.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.81, caution is advised due to increased financial risk.
Financial Valuation Breakdown:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 24.0 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.47, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 14.36, Flowserve presents an attractive value opportunity.
Market Capitalization Perspectives: The company’s market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
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The Impact of Insider Transactions on Investments
While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
In the context of legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
Cracking Transaction Codes
When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
