Tenaris (NYSE:TS) has been downgraded from a “buy” rating to a “hold” rating by analysts at Wall Street Zen, following a research note released on April 14, 2024. This change reflects a broader trend among financial analysts evaluating the industrial products company, with several firms adjusting their price targets and ratings.
On April 15, Stifel Nicolaus lowered its price target for Tenaris from $43.00 to $41.00 while maintaining a “buy” rating. In contrast, Barclays set a more optimistic price target of $48.00, assigning the stock an “overweight” rating on May 6. Conversely, Morgan Stanley revised its price target down from $35.00 to $34.00 and designated the stock as “underweight” in a report released on May 16. Additionally, BNP Paribas initiated coverage on Tenaris on April 22, giving the company an “outperform” rating.
Analysts’ assessments of Tenaris have been mixed, with two issuing sell ratings, two recommending hold ratings, and five suggesting buy ratings. According to data from MarketBeat.com, Tenaris currently holds an average rating of “Hold” and a consensus target price of $44.00.
Earnings Report and Share Repurchase Plan
Tenaris recently reported its earnings results on April 30, 2024. The company achieved earnings per share (EPS) of $0.94, exceeding the consensus estimate of $0.80 by $0.14. Revenue for the quarter reached $2.92 billion, surpassing analyst expectations of $2.88 billion. Despite these positive figures, Tenaris experienced a 15.1% decline in quarterly revenue compared to the same period last year, when the firm reported an EPS of $1.27. Analysts predict that Tenaris will post an EPS of 3.14 for the current fiscal year.
In a strategic move, Tenaris announced on May 27 that its board approved a share repurchase plan allowing the company to repurchase up to $1.20 billion in shares. This authorization permits the firm to buy back up to 6.2% of its outstanding shares in the open market, a gesture often interpreted as a sign that management believes the stock is undervalued.
Institutional Investment Activity
Recent activity among institutional investors indicates a growing interest in Tenaris. The Bank of New York Mellon Corp increased its stake in the company by 26.9% in the fourth quarter, acquiring an additional 2,726 shares to bring its total ownership to 12,846 shares, valued at approximately $485,000. Similarly, Charles Schwab Investment Management Inc. raised its holdings by 16.5%, owning 26,946 shares worth around $1,018,000 after acquiring 3,814 additional shares.
Proficio Capital Partners LLC also entered the scene by purchasing a new stake valued at about $968,000 during the same period. EverSource Wealth Advisors LLC increased its holdings in Tenaris by 78.9%, bringing its ownership to 1,084 shares valued at approximately $41,000. Signaturefd LLC also raised its holdings marginally by 2.3%, adding 418 shares to reach a total of 18,647 shares valued at approximately $705,000. Currently, hedge funds and other institutional investors hold around 10.45% of Tenaris’s stock.
Tenaris SA, along with its subsidiaries, specializes in producing and selling seamless and welded steel tubular products tailored for the oil and gas sector as well as other industrial applications. The company offers a range of products including steel casings, tubing products, and premium joints, emphasizing its pivotal role in supporting energy infrastructure worldwide.
