The investment case for Flowserve Corporation is drawing increased attention following significant stock sales by its chief executive and a lack of consensus among Wall Street analysts. While the company’s recent quarterly performance was strong and included a raised profit outlook, actions by senior leadership have introduced uncertainty.
Strong Quarterly Results Provide a Solid Base
Flowserve reported robust operational results for the third quarter of 2025, forming a fundamental counterpoint to the current market concerns. The company posted adjusted earnings per share (EPS) of $0.90, decisively beating expectations of $0.80. Revenue came in at $1.17 billion, though this figure slightly missed forecasts.
Key operational highlights from the quarter include:
* Bookings totaled $1.2 billion.
* Aftermarket orders increased by 6% to over $650 million.
* The Power segment grew by 23%, bolstered by $140 million in nuclear-related orders.
* Management raised its full-year 2025 EPS guidance from a range of $3.25-$3.40 to $3.40-$3.50.
Despite these solid fundamentals and a year-to-date share price gain exceeding 23%, some technical indicators suggest the stock may be overbought, potentially signaling a period of consolidation after its recent rally.
CEO’s Substantial Stock Sale Raises Questions
A notable development for shareholders was a large-scale insider sale by President and CEO Robert Scott Rowe. On December 2, 2025, Rowe disposed of 212,683 Flowserve shares, a transaction valued at approximately $14.99 million. Sales of this magnitude by a company’s top executive invariably lead investors to question whether it reflects a lack of confidence in the firm’s near-term prospects.
Should investors sell immediately? Or is it worth buying Flowserve?
Analyst Community Presents a Divided Picture
Market experts are currently offering starkly contrasting assessments of Flowserve’s equity. In mid-November, Bank of America’s Andrew Obin downgraded the stock from “Buy” to “Neutral.” His analysis concluded that the near-term upside potential from the nuclear business was already reflected in the share price, and that core markets like Oil & Gas and Chemicals could weaken through 2026.
However, several other major institutions have recently moved in the opposite direction:
* TD Cowen, UBS, Goldman Sachs, and RBC Capital have all raised their price targets for Flowserve.
* The average 12-month price target among analysts stands at $76.80, with estimates ranging from a low of $60 to a high of $84.
This polarization underscores the challenging task of evaluating the stock’s future trajectory.
Short Interest Declines but Remains Elevated
Data on short-selling activity shows a modest retreat by bearish investors. The short interest as a percentage of float decreased by 10.9%. Nevertheless, at 5.56%, this level remains significantly above the industry average of 4.42%. The slight pullback indicates some bears are covering their positions, but a foundational layer of market skepticism persists.
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