Examining Flowserve's Recent Short Interest Trends

FLOWSERVE'S SHORT INTEREST SEEKS TO REVEAL COMPANY'S FUTURE

April 25, 2023 - In a recent report, Benzinga delved into the short interest of Flowserve Corporation (NYSE: FLS), a leading provider of flow control and pressure management solutions. The findings provide valuable insights into the market's sentiment towards the company, which has been experiencing a tumultuous period.

According to the report, Flowserve's short interest has been steadily increasing over the past year, with the most recent data showing a significant spike. As of April 14, the short interest stood at 14.1 million shares, representing approximately 6.8% of the company's total float. This marks a notable increase from the previous quarter, where the short interest was around 10.3 million shares.

The surge in short interest may be attributed to several factors, including concerns over the company's financial performance and the broader market's volatility. Flowserve's stock has been trading relatively flat over the past year, with some analysts questioning the company's ability to maintain its profitability in the face of global economic uncertainty.

However, the company has been working to address these concerns by implementing cost-cutting measures and diversifying its product offerings. In its latest quarterly earnings report, Flowserve reported a modest increase in revenue and a decrease in net losses. While the results were not spectacular, they indicate that the company is making progress in its efforts to stabilize its performance.

Despite the short interest, Flowserve's fundamentals remain relatively strong. The company has a solid balance sheet and a diverse portfolio of products and services. Additionally, the flow control and pressure management industries are poised for growth, driven by increasing demand for energy and infrastructure development.

In conclusion, the recent surge in short interest surrounding Flowserve Corporation highlights the market's skepticism towards the company's ability to recover from its recent struggles. However, the company's efforts to improve its financial performance and its relatively strong fundamentals suggest that it may be worth considering for investors looking for a contrarian play. As always, investors are advised to conduct their own due diligence and consider multiple factors before making an investment decision.