Ross Shuster Takes a Bullish Stance: Acquires $159K In Flowserve Stock

On May 19, a substantial insider purchase was made by Ross Shuster, Board Member at Flowserve FLS, as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled that Shuster 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.

Financial Milestones: Flowserve's Journey

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. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Key Profitability Indicators:

• 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 is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.56.

Debt Management: Flowserve's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.81, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 24.0, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.47 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Flowserve's EV/EBITDA ratio, lower than industry averages at 14.36, indicates attractively priced shares.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Exploring the Significance of Insider Trading

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Exploring Key Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.