Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed on March 21, Geurt G Schoonman, Senior Vice President at Hess (NYSE:HES), executed a substantial insider sell as per the latest SEC filing.
What Happened: Schoonman opted to sell 13,921 shares of Hess, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The transaction's total worth stands at $2,103,130.
Hess's shares are actively trading at $149.43, experiencing a up of 0.06% during Friday's morning session.
Discovering Hess: A Closer Look Hess is an independent oil and gas producer with key assets in the Bakken Shale, Guyana, the Gulf of Mexico, and Southeast Asia. At the end of 2022, the company reported net proved reserves of 1.3 billion barrels of oil equivalent. Net production averaged 344 thousand barrels of oil equivalent per day in 2022, at a ratio of 72% oil and natural gas liquids and 28% natural gas.
Hess's Economic Impact: An Analysis Revenue Growth: Hess's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 2.62%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Energy sector.
Navigating Financial Profits:
- Gross Margin: With a high gross margin of 63.7%, the company demonstrates effective cost control and strong profitability relative to its peers.
- Earnings per Share (EPS): Hess's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 1.344584.
Market Valuation:
- Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 33.26 suggests caution, as the stock may be overvalued in the eyes of investors.
- Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 4.37 suggests overvaluation in the eyes of investors, considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 10.46, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.
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Why Pay Attention to Insider Transactions Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced 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 Hess's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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