Flowserve Director Makes $159K Stock Purchase

On May 19, a substantial insider purchase was made by Michael McMurray, Director at Flowserve FLS, as per the latest SEC filing.

What Happened: McMurray 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.

Tracking the Tuesday's morning session, Flowserve shares are trading at $51.37, showing a down of 0.0%.

Delving into Flowserve's Background

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's Economic Impact: An Analysis

Revenue Growth: Flowserve's remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 5.25%. This signifies 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.

Navigating Financial Profits:

• 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. The company faced challenges with a current EPS of 0.56. This suggests a potential decline in earnings.

Debt Management: Flowserve's debt-to-equity ratio stands notably higher than the industry average, reaching 0.81. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: Flowserve's P/E ratio of 24.0 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.47 is lower than the industry average, implying a discounted valuation for Flowserve's stock in relation to 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 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.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Impact of Insider Transactions on Investments

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Breaking Down the Significance of 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.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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