Paradice Makes Flowserve its 5th-Largest Position, Buys Another $11.5 Million in Stock
Key Points
Paradice increased its stake in Flowserve by 178,356 shares; the estimated trade size was $11.46 million based on the quarterly average price.
The quarter-end position value rose by $17.87 million, reflecting both additional shares and stock price movement.
The transaction value equaled 2.23% of reportable 13F assets under management (AUM).
Post-trade: 516,510 shares held, valued at $35.84 million.
The position now represents 6.98% of fund AUM, making it Paradice's fifth-largest holding.
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On Jan. 28, 2026, Paradice Investment Management LLC disclosed a purchase of 178,356 shares of Flowserve (NYSE:FLS), an estimated $11.46 million trade based on quarterly average pricing.
What happened
According to a Securities and Exchange Commission (SEC) filing dated Jan. 28, 2026, Paradice Investment Management LLC increased its position in Flowserve by 178,356 shares during the fourth quarter of 2025. The estimated value of this share purchase is $11.46 million, based on the average closing price over the quarter. The fund’s quarter-end position in Flowserve rose in value by $17.87 million, a figure that incorporates both trading activity and stock price changes.
What else to know
This purchase increased Flowserve’s stake to 6.98% of Paradice's reportable 13F assets under management (AUM).
- Top holdings after the filing:
- Globus Medical: $46.10 million (8.98% of AUM)
- Tandem Diabetes Care: $45.67 million (8.89% of AUM)
- Envista: $37.11 million (7.23% of AUM)
- Lear Corp.: $36.86 million (7.18% of AUM)
- Flowserve: $35.84 million (6.98% of AUM)
As of Jan. 28, 2026, shares were priced at $76.90, up 28.49% over the past year, outperforming the S&P 500 by 12 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $4.69 billion |
| Net Income (TTM) | $452.78 million |
| Dividend Yield | 1.09% |
| Price (as of market close Jan. 28, 2026) | $76.90 |
Company snapshot
- Flowserve provides industrial flow management equipment, including pumps, valves, seals, and related aftermarket services, serving critical infrastructure sectors.
- The company generates revenue from the sale of engineered products and aftermarket services, leveraging both direct sales and global distributor networks.
- Primary customers include companies in oil and gas, chemical and pharmaceuticals, power generation, water management, and general industrial markets.
Flowserve is a leading provider of flow management solutions with a global footprint and a diversified customer base. The company’s strategy centers on delivering engineered products and aftermarket services that are essential to the operation of mission-critical industrial processes. Competitive advantage is driven by technical expertise, a broad product portfolio, and strong relationships in end-markets requiring high reliability and regulatory compliance.
What this transaction means for investors
Paradice’s purchase of Flowserve again in Q4 (after opening the position in Q3) is very interesting to me. Particularly because the firm originally purchased the stock at $53 per share in Q3, and Paradice essentially doubled down on it at $69 in Q4. That is a significant vote of confidence in my eyes -- and I think the stock is deserving of these purchases, even at a higher price.
While Flowserve has mustered only 3% annual sales growth over the last five years, its net income has jumped by 10% each year over that time. This growth may seem underwhelming, but the company has a significant growth opportunity ahead as a picks-and-shovels provider to the nuclear energy industry. Though these nuclear sales currently only account for roughly 14% of Flowserve’s sales, the nuclear industry could be poised to boom as skyrocketing AI and data center growth may force governments (and mega-cap tech companies) to reckon with how to meet soaring energy demand.
That’s where Flowserve comes in. Three-quarters of the 416 active nuclear reactors worldwide use Flowserve products, such as its pumps. Management believes this nuclear flow opportunity could be worth more than $10 billion over the next decade -- a massive figure for a $10 billion market-cap stock. Despite this potential and its stable core industrial, energy, and chemical operations, Flowserve still trades at only 19 times forward earnings -- even after its shares rose 28% in the last year. If you believe nuclear energy will play a bigger role in the future, Flowserve may be a way to get exposure to that niche. Paradice’s purchases could make a lot of sense here.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Globus Medical. The Motley Fool recommends Flowserve. The Motley Fool has a disclosure policy.
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