Analysts at Wall Street Zen have lowered their rating on Tenaris (NYSE: TS) from “buy” to “hold.” This change comes in a research note published on Sunday, reflecting a shift in sentiment among several financial institutions regarding the company’s stock performance.
In recent assessments, Stifel Nicolaus adjusted its price target for Tenaris from $43.00 to $41.00 while maintaining a “buy” rating. Meanwhile, Barclays set a more optimistic price target of $48.00 and classified the stock as “overweight” in its report on May 6, 2024. Contrarily, Morgan Stanley reduced its target from $35.00 to $34.00 and recommended an “underweight” rating on May 16. Additionally, BNP Paribas initiated coverage on Tenaris with an “outperform” rating as of April 22.
The consensus among analysts indicates a mixed outlook, with two rating the stock as a sell, two as hold, and five as buy. According to data from MarketBeat.com, Tenaris currently holds an average rating of “hold” with a consensus target price set at $44.00.
Tenaris Reports Earnings, Announces Share Repurchase Plan
Tenaris recently announced its earnings results on April 30, 2024. The industrial products company recorded earnings per share (EPS) of $0.94 for the quarter, surpassing the consensus estimate of $0.80 by $0.14. Revenue for the quarter reached $2.92 billion, exceeding analyst expectations of $2.88 billion. The firm reported a return on equity of 10.54% and a net margin of 15.05%. Despite these positive figures, Tenaris experienced a year-over-year revenue decline of 15.1%, down from an EPS of $1.27 in the same period last year. Analysts project that Tenaris will report an EPS of 3.14 for the current fiscal year.
In a strategic move, Tenaris’s board approved a share repurchase plan on May 27, 2024, allowing the company to repurchase up to $1.20 billion in shares. This plan enables the company to buy back approximately 6.2% of its shares through open market transactions, a decision typically indicative of management’s belief that the stock is undervalued.
Institutional Investment Trends in Tenaris
Recent trading activity shows significant involvement from institutional investors and hedge funds in Tenaris. Bank of New York Mellon Corp increased its stake in the company by 26.9% during the fourth quarter, acquiring an additional 2,726 shares to reach a total of 12,846 shares, valued at approximately $485,000.
Charles Schwab Investment Management Inc. also raised its holdings in Tenaris by 16.5%, now owning 26,946 shares worth around $1,018,000 after acquiring an additional 3,814 shares. Other notable movements include Proficio Capital Partners LLC, which purchased a new stake valued at about $968,000, and EverSource Wealth Advisors LLC, which raised its holdings by 78.9% during the same quarter.
Overall, approximately 10.45% of Tenaris’s stock is currently held by hedge funds and other institutional investors, illustrating a growing interest in the company amidst fluctuating market conditions.
Tenaris SA, headquartered in Luxembourg, is a key player in the production and sale of seamless and welded steel tubular products primarily for the oil and gas sector. The company also serves various industrial applications, providing a wide range of products including steel casings, tubing, and structural pipes.