Fluor Co. (NEW) (FLR) Downgraded to Hold at Zacks Investment Research

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Zacks Investment Research downgraded shares of Fluor Co. (NEW) (NYSE:FLR) from a strong-buy rating to a hold rating in a research report sent to investors on Friday morning.

According to Zacks, “Shares of Fluor have outperformed the industry year to date. The outperformance was backed by a solid earnings surprise history, beating the consensus mark in three of the past four quarters, with the average being 3.3%. Fluor’s market diversity remains a key strength that helps it mitigate the cyclicality of markets in which it operates. Strong focus on streamlining business structure to boost profitability is also encouraging. Also, stabilizing commodity prices and gradual improvement in energy and mining sectors are anticipated to unlock further opportunities for growth. The recent contract win for LNG Canada project is expected to provide much support to its backlog, which has been under pressure for the last few quarters. However, the company's dismal third-quarter 2018 preliminary results raise concern. Estimates have also been trending downward over the past seven days.”

A number of other equities analysts have also recently issued reports on the stock. ValuEngine cut shares of Fluor Co. (NEW) from a buy rating to a hold rating in a research note on Friday. Citigroup set a $66.00 price target on shares of Fluor Co. (NEW) and gave the stock a buy rating in a research note on Thursday. Bank of America set a $67.00 price target on shares of Fluor Co. (NEW) and gave the stock a buy rating in a research note on Thursday. MKM Partners reiterated a hold rating and issued a $56.00 price target on shares of Fluor Co. (NEW) in a research note on Thursday. Finally, UBS Group set a $69.00 price target on shares of Fluor Co. (NEW) and gave the stock a buy rating in a research note on Thursday. Eight analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. The stock presently has an average rating of Hold and an average target price of $58.31.

Shares of NYSE:FLR traded up $0.18 during midday trading on Friday, reaching $46.71. The company’s stock had a trading volume of 3,446,811 shares, compared to its average volume of 1,436,523. The company has a market capitalization of $8.17 billion, a PE ratio of 28.66, a P/E/G ratio of 0.74 and a beta of 1.46. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.45 and a quick ratio of 1.03. Fluor Co. has a 12-month low of $42.27 and a 12-month high of $62.09.

Fluor Co. (NEW) (NYSE:FLR) last released its earnings results on Thursday, August 2nd. The construction company reported $0.81 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.70 by $0.11. The firm had revenue of $4.88 billion for the quarter, compared to the consensus estimate of $4.58 billion. Fluor Co. (NEW) had a net margin of 1.28% and a return on equity of 11.63%. The company’s revenue was up 3.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.72 EPS. Equities analysts anticipate that Fluor Co. will post 2.96 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Tuesday, October 2nd. Investors of record on Tuesday, September 4th were paid a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 1.80%. The ex-dividend date of this dividend was Friday, August 31st. Fluor Co. (NEW)’s payout ratio is 51.53%.

A number of institutional investors have recently made changes to their positions in FLR. San Francisco Sentry Investment Group CA lifted its stake in Fluor Co. (NEW) by 5,010.0% during the 2nd quarter. San Francisco Sentry Investment Group CA now owns 2,044 shares of the construction company’s stock valued at $100,000 after acquiring an additional 2,004 shares during the period. Whittier Trust Co. lifted its stake in Fluor Co. (NEW) by 393.4% during the 2nd quarter. Whittier Trust Co. now owns 2,985 shares of the construction company’s stock valued at $230,000 after acquiring an additional 2,380 shares during the period. Tower Research Capital LLC TRC bought a new position in Fluor Co. (NEW) during the 2nd quarter valued at about $163,000. Whittier Trust Co. of Nevada Inc. lifted its stake in Fluor Co. (NEW) by 133.1% during the 2nd quarter. Whittier Trust Co. of Nevada Inc. now owns 3,380 shares of the construction company’s stock valued at $260,000 after acquiring an additional 1,930 shares during the period. Finally, Cerebellum GP LLC bought a new position in Fluor Co. (NEW) during the 2nd quarter valued at about $180,000. Institutional investors own 88.48% of the company’s stock.

Fluor Co. (NEW) Company Profile

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, fabrication and modularization, commissioning and maintenance, and project management services worldwide. The company's Energy & Chemicals segment offers a range of design, engineering, procurement, construction, fabrication, and project management services in the upstream, midstream, downstream, chemical, petrochemical, offshore and onshore oil and gas production, liquefied natural gas and pipeline markets.

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