Insider Buying

Insider Buying Report: Fluor Corp (FLR:US)

Fluor Corp
(FLR:US)
12 months:
+39.27%
Activity:
Bullish
Pattern:
Large purchase from board member
News:
Q1 results
Fluor Corp
(FLR:US)
12 months:
+39.27%
Activity:
Bullish
Pattern:
Large purchase from board member
News:
Q1 results

Corporate executives and directors tend to have superior information in relation to their firms’ operating activities. If these individuals are buying company stock, it’s generally worth taking a closer look.

In this report, we are going to highlight some interesting insider buying at Fluor Corp (FLR:US). Fluor is an American company that provides engineering, procurement, construction, fabrication and modularization, operations, maintenance and asset integrity, as well as project management services. It serves a number of markets, including the energy, mining, infrastructure, and life science industries, as well as US federal agencies. The company is listed on the New York Stock Exchange and currently has a market capitalization of $3.68 billion.

Fluor Corp: Insider Buying

Our data shows that between May 10 and May 11, board member James Hackett purchased 40,000 shares at an average price of $25.56 per share. This trade cost the insider $1.02 million and increased his holding to 94,192 shares.

The chart shows the price history of Fluor Corp, with important purchase and sell events highlighted.

High-Conviction Buy

Mr. Hackett – who has served as a director since 2016 – has experience both in the industrial and energy industries and the investment world. Previously, he was Executive Chairman and Interim CEO at Alta Mesa Resources, Inc. He was also CEO at Kingfisher Midstream, LLC and Anadarko Petroleum Corporation. Meanwhile, between 2013 and 20202, he was a Partner at Riverstone Holdings LLC, a private investment firm that is focused on energy, power, and infrastructure. Given this experience, he is likely to have a good understanding of Fluor’s prospects and intrinsic value.

What stands out about this trading activity from Mr. Hackett is the size of the purchase. The fact that the insider has spent over $1 million of his own money on stock, and increased the size of his holding by nearly 75%, suggests that he is very confident that the stock is set to move higher.

Pipeline Conversion

Fluor recently posted a solid set of results for the first quarter of 2022.

For the period, net income from continuing operations and adjusted earnings per share came in at $48 million and $0.16 respectively. This was a significant improvement on the figures of -$86 million and $0.03 posted a year earlier.

At the end of the quarter, the group had $2.1 billion worth of cash and marketable securities on its balance sheet, and a backlog of $19.3 billion versus $20.8 billion year earlier.

“This year is off to a great start as we see our strategic focus accelerate change and improve our competitive position in the key markets we serve,” commented David Constable, Chairman and CEO of Fluor.

Looking ahead, management was optimistic about the future, stating that it anticipates “significant conversion” of its prospect pipeline over the next three quarters. And it reaffirmed its 2022 adjusted EPS guidance of $1.15 to $1.40.

“We see our clients moving forward with a significant amount of work over the next few quarters, and we are well positioned to deploy our world-class teams to support their efforts,” said Mr. Constable.

In light of these solid results, we see the insider buying here as a bullish indicator.

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