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Justin Rounce, Executive Vice President and Chief Technology Officer at TechnipFMC plc (NYSE:FTI), made significant stock transactions recently, according to an SEC filing. On March 11 and 12, Rounce sold a total of 471,040 ordinary shares at prices ranging from $25.65 to $26.65 per share, amounting to a total sale value of approximately $12.78 million. The sales occurred as TechnipFMC trades at a P/E ratio of 13.5x, with InvestingPro analysis indicating the stock is currently undervalued relative to its Fair Value.
In addition to these sales, Rounce exercised stock options to acquire 42,178 shares at an exercise price of $16.47 per share on March 12. This transaction had a total value of $694,671. The transactions were conducted under a Rule 10b5-1 trading plan, which Rounce adopted in December 2024. Following these transactions, Rounce holds 140,207 shares of TechnipFMC. The company maintains a "GOOD" overall financial health score according to InvestingPro, which notes strong returns over the last five years and seven analysts revising earnings upward for the upcoming period. For deeper insights into TechnipFMC’s valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, TechnipFMC reported impressive fourth-quarter 2024 earnings, surpassing analyst expectations with earnings per share of $0.54 compared to a forecast of $0.35. The company’s revenue for the quarter reached $2.37 billion, exceeding the projected $2.3 billion. For the full year, TechnipFMC achieved a total revenue of $9.1 billion, marking a 16% increase from the previous year, and an adjusted EBITDA of nearly $1.4 billion, reflecting a 47% rise. Additionally, the company announced a net cash position of $272 million and distributed $486 million to shareholders, nearly doubling the prior year’s distributions.
TD Cowen analysts recently raised their price target for TechnipFMC to $38 from $37, maintaining a Buy rating, following the company’s strong quarterly performance and an upgrade to its 2025 Subsea guidance. The analysts highlighted TechnipFMC’s robust order intake, which is expected to continue beyond 2025, providing a positive outlook for the company’s future business. Concerns about vessel availability due to industry consolidation were addressed, with TechnipFMC indicating no expected issues, further reassuring stakeholders.
TechnipFMC also launched its innovative Subsea 2.0 product architecture and achieved investment-grade ratings from all three major agencies. The company projects high single-digit revenue growth for 2025 and anticipates adjusted EBITDA to reach approximately $1.76 billion. TechnipFMC plans to convert over 50% of EBITDA to free cash flow and distribute at least 70% to shareholders, aiming for annual inbound orders exceeding $10 billion, targeting $30 billion over three years ending in 2025.
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