Bullish Move: GAYLA DELLY Shows Confidence, Acquires $159K In Flowserve Stock

It was revealed in a recent SEC filing that GAYLA DELLY, Board Member at Flowserve (NYSE:FLS) made a noteworthy insider purchase on May 19,.

What Happened: DELLY made a significant move by purchasing 3,099 shares of Flowserve as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $159,970.

The latest update on Tuesday morning shows Flowserve shares down by 0.0%, trading at $51.37.

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: A Financial Overview

Positive Revenue Trend: Examining Flowserve's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.25% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Interpreting Earnings Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 32.27%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Flowserve's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.56.

Debt Management: With a high debt-to-equity ratio of 0.81, Flowserve faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 24.0 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.47 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 14.36, Flowserve's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Illuminating the Importance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per 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.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

A Closer Look at Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.