TechnipFMC plc (NYSE: FTI) achieved a new 52-week high on October 10, 2023, following the announcement of quarterly earnings that surpassed analysts’ expectations. The stock reached an intraday high of $41.35 before closing at $40.83, significantly up from its previous close of $37.51. The trading volume for the day was approximately 11.6 million shares.
The oil and gas company reported earnings per share (EPS) of $0.75 for the quarter, exceeding the consensus estimate of $0.65 by $0.10. In addition, TechnipFMC recorded revenue of $2.65 billion, which also surpassed the forecasted $2.60 billion. The company demonstrated a net margin of 9.67% and a return on equity of 30.23%. Notably, quarterly revenue increased by 12.7% year-over-year, compared to $0.64 EPS during the same period last year.
Dividend Announcement and Analyst Ratings
In a further demonstration of financial health, TechnipFMC announced a quarterly dividend of $0.05 per share, payable on December 3, 2023, to investors of record as of November 18, 2023. This represents an annualized dividend of $0.20, yielding approximately 0.5%. The company’s dividend payout ratio stands at 8.93%.
Analysts have been optimistic about TechnipFMC’s performance. On October 10, 2023, BNP Paribas set a target price of $47.00 while rating the stock as “outperform.” Earlier, Wall Street Zen upgraded TechnipFMC from a “hold” to a “buy” rating on October 4, 2023. Barclays also raised its target price from $45.00 to $51.00, assigning an “overweight” rating. A report from JPMorgan Chase & Co. increased its price target from $41.00 to $43.00, maintaining an “overweight” rating. Currently, three analysts classify the stock as a Strong Buy, thirteen as Buy, and two as Hold, with an average rating of “Buy” and a consensus target price of $42.00.
Insider Transactions and Institutional Investments
In related news, CEO Douglas J. Pferdehirt sold 632,539 shares of TechnipFMC stock on September 22, 2023, at an average price of $38.62, totaling approximately $24.4 million. Following this transaction, Pferdehirt retains ownership of 2.9 million shares, valued at around $112.7 million. This sale represented a 17.82% decrease in his ownership stake.
CFO Alf Melin also sold shares on the same day, offloading 113,760 shares at an average price of $38.61 for a total of approximately $4.4 million. Melin’s remaining shares are valued at $9.3 million, reflecting a 32.05% reduction in his position. Over the last ninety days, insiders have sold 876,603 shares valued at $33.8 million, with current insider ownership at 1.80%.
Institutional investors have been active around TechnipFMC’s stock as well. MGO One Seven LLC acquired a new position in the third quarter valued at about $923,000. The New York State Teachers Retirement System significantly boosted its stake by over 14,930%, acquiring an additional 287,711 shares to reach a total of 289,638 shares, worth approximately $11.4 million. Other institutional movements included new positions from the Oregon Public Employees Retirement Fund and the State of Alaska Department of Revenue.
TechnipFMC now boasts 96.58% of its stock held by institutional investors, indicating strong confidence from the investment community.
Overall, TechnipFMC’s recent performance and positive outlook, as reflected in earnings and analyst ratings, position the company favorably in the competitive oil and gas sector.
