Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A substantial insider activity was disclosed on May 20, as Nimbley, Executive Chairman at PBF Energy (NYSE:PBF), reported the exercise of a large sell of company stock options.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday revealed that Nimbley, Executive Chairman at PBF Energy in the Energy sector, exercised stock options for 50,000 shares of PBF stock. The exercise price of the options was $24.43 per share.
The Tuesday morning market activity shows PBF Energy shares up by 0.06%, trading at $49.75. This implies a total value of $1,266,000 for Nimbley's 50,000 shares.
Get to Know PBF Energy Better PBF Energy Inc is an independent petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants, and other petroleum products in the United States. The company owns refineries in Delaware, Ohio, New Jersey, California, and Louisiana. The Company operates in two reportable business segments: Refining and Logistics. The Company's oil refineries are all engaged in the refining of crude oil and other feedstocks into petroleum products and are aggregated into the Refining segment. PBFX operates logistics assets such as crude oil and refined products terminals, pipelines and storage facilities. The Logistics segment consists solely of PBFX's operations.
Breaking Down PBF Energy's Financial Performance Decline in Revenue: Over the 3 months period, PBF Energy faced challenges, resulting in a decline of approximately -6.99% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Energy sector.
Insights into Profitability:
- Gross Margin: The company faces challenges with a low gross margin of 2.52%, suggesting potential difficulties in cost control and profitability compared to its peers.
- Earnings per Share (EPS): With an EPS below industry norms, PBF Energy exhibits below-average bottom-line performance with a current EPS of 0.89.
Evaluating Valuation:
- Price to Earnings (P/E) Ratio: The P/E ratio of 3.42 is lower than the industry average, implying a discounted valuation for PBF Energy's stock.
- Price to Sales (P/S) Ratio: The P/S ratio of 0.17 is lower than the industry average, implying a discounted valuation for PBF Energy's stock in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 2.08, PBF Energy presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
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Exploring the Significance of Insider Trading While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Transaction Codes To Focus On For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of PBF Energy's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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