For informational purposes only — not investment advice

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FLS

LONGINSIDER BUY

FLOWSERVE CORP

Funds
3
Score
4.50
vs SPY
-13.6%
Stock return (since Q-end)
+2.7%
SPY return (since Q-end)
+16.3%
Current price
$75.51

News Summary

Neutral

Flowserve beat Q1 adjusted EPS ($0.85 vs. $0.82 consensus) with margin expansion of 230 bps, but missed revenue by $100M and reduced 2026 organic revenue guidance to -1% to +2% due to Middle East disruption. The company is executing on the $490M Trillium Flow Technologies acquisition and reaffirming full-year EPS guidance of $4.00-$4.20, but near-term headwinds and activist pressure from Starboard Value present near-term uncertainty.

Red flags

  • Revenue missed consensus by $100M (1.07B vs. 1.17B expected); YoY revenue decline of 6.7%
  • 2026 organic revenue guidance reduced from +1-3% to -1-2% range due to Middle East disruption
  • Q2 sales expected down low to mid-single digits with continued Middle East operational disruption
  • Middle East conflict caused $50M bookings headwind and $0.06 EPS drag
  • Activist investor Starboard Value LP applied pressure (May 28, 2026); board reduced from 11 to 9 directors
  • Multiple analyst downgrades post-earnings: BofA lowered PT to $85, RBC cut PT from $98 to $91; Zacks downgraded to 'hold'

Funds Buying (3)

FundManagerShares Held∆ SharesPosition ValueQoQStatus
D1 CapitalDan Sundheim5.9M+5.9M$431.8BNEW
Durable Capital PartnersHenry Ellenbogen952K+952K$70.0BNEW
Point72Steve Cohen45K+45K$3.3BNEW

Shares Held and Position Value reflect total quarter-end holdings. ∆ Shares is the change from the prior quarter.

Insider Activity

NameTitleTypeSharesPriceValueFiled
McMurray Michael C.BUY3K$65.71$0.16M2026-05-18
Savoy Brian DBUY1K$67.34$0.07M2026-05-14