Flowserve Surges 2.44% on Merger Exit Trading Volume Jumps 771.3% to Rank 115th

On July 29, 2025, Flowserve (FLS) rose 2.44% with a trading volume of $0.91 billion, a 771.3% increase from the previous day, ranking 115th in market activity. This surge followed the company’s announcement of terminating its merger agreement with Chart Industries. Flowserve will receive a $266 million termination fee, citing strategic focus on standalone growth through its 3D strategy—Diversify, Decarbonize, and Digitize. CEO Scott Rowe emphasized robust operational performance, strong free cash flow, and confidence in the company’s ability to drive long-term value. The decision to abandon the merger followed Chart Industries’ pivot toward a “superior proposal” from Baker Hughes, underscoring Flowserve’s commitment to financial discipline and operational resilience.

The termination payment provides immediate liquidity while allowing Flowserve to redirect resources toward innovation and sustainability initiatives. Management highlighted sustained demand for its flow control solutions across industrial markets, bolstered by the Flowserve Business System’s productivity gains and margin expansion. The company also reported second-quarter financial results, with a conference call scheduled to discuss performance in detail. Analysts note that the merger’s collapse removes uncertainty, potentially stabilizing investor sentiment amid broader market volatility.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day generated a 166.71% return from 2022 to the present, far outpacing the benchmark’s 29.18%. This approach achieved a 137.53% excess return, a 31.89% compound annual growth rate, and a Sharpe ratio of 1.14, demonstrating strong risk-adjusted performance despite a 0.00% maximum drawdown.