TechnipFMC Shares Surge to 52-Week High on Strong Earnings Report

TechnipFMC plc’s stock price reached a new 52-week high on October 10, 2023, following the announcement of better-than-expected quarterly earnings. The shares surged to a peak of $41.35 before closing at $40.83, representing a significant increase from the previous close of $37.51. Trading volume for the day reached approximately 11.6 million shares, reflecting heightened investor interest.

The oil and gas company reported earnings of $0.75 per share (EPS) for the quarter, surpassing the consensus estimate of $0.65 by $0.10. Revenue for the period totaled $2.65 billion, exceeding expectations of $2.60 billion. The firm achieved a net margin of 9.67% and a return on equity of 30.23%. This represents a year-over-year revenue increase of 12.7%, compared to $0.64 EPS reported in the same quarter last year.

Dividend Announcement and Analyst Ratings

In conjunction with its earnings report, TechnipFMC declared a quarterly dividend of $0.05 per share, set to be paid on December 3, 2023. Shareholders on record as of November 18, 2023, will be eligible for this payment. The annualized dividend amounts to $0.20, yielding approximately 0.5%. The company’s dividend payout ratio stands at 8.93%.

Analysts have reacted positively to the earnings report. BNP Paribas set a target price of $47.00, granting an “outperform” rating. Additionally, Wall Street Zen upgraded its rating from “hold” to “buy.” Barclays also increased its target for TechnipFMC from $45.00 to $51.00, maintaining an “overweight” rating. Overall, three analysts have issued a Strong Buy rating, while thirteen have rated the stock as a Buy, with the average consensus target price at $42.00, according to MarketBeat.com.

Insider Transactions and Institutional Investor Activity

In recent insider transactions, CEO Douglas J. Pferdehirt sold 632,539 shares of the company’s stock on September 22, 2023, at an average price of $38.62, amounting to approximately $24.4 million. This sale reduced his ownership stake by 17.82%, leaving him with about 2.9 million shares valued at approximately $112.7 million. Chief Financial Officer Alf Melin also sold 113,760 shares on the same day for a total of $4.4 million, decreasing his stake by 32.05%. Over the past ninety days, insiders have sold a total of 876,603 shares valued at around $33.8 million, with insiders currently holding 1.80% of the company’s stock.

Institutional investors have been active as well. During the third quarter, MGO One Seven LLC acquired a new position in TechnipFMC, valued at approximately $923,000. The New York State Teachers Retirement System significantly increased its stake by 14,930.5%, now owning 289,638 shares worth about $11.4 million. Other notable activities include the Oregon Public Employees Retirement Fund acquiring a new position valued at around $3.3 million and State of Alaska Department of Revenue purchasing shares valued at approximately $1.7 million. Institutional investors collectively own 96.58% of TechnipFMC.

As of the latest figures, the company’s fifty-day simple moving average is $37.95, while the two-hundred-day average stands at $34.08. TechnipFMC boasts a market capitalization of $16.24 billion, a price-to-earnings ratio of 17.64, and a debt-to-equity ratio of 0.12.

TechnipFMC operates in the energy sector, providing technologies and services across Europe, Central Asia, North America, Latin America, the Asia Pacific, Africa, and the Middle East. The company primarily functions through two segments: Subsea and Surface Technologies, focusing on engineering and life cycle services for subsea systems used in oil and gas production.