Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A substantial insider sell was reported on March 21, by Andrew P Slentz, Senior Vice President at Hess (NYSE:HES), based on the recent SEC filing.
What Happened: Slentz's decision to sell 20,254 shares of Hess was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $3,060,073.
At Friday morning, Hess shares are down by 0.0%, trading at $149.34.
Get to Know Hess Better 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.
A Deep Dive into Hess's Financials Revenue Growth: Hess displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 2.62%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Energy sector.
Key Insights into Profitability Metrics:
- Gross Margin: Achieving a high gross margin of 63.7%, the company performs well in terms of cost management and profitability within its sector.
- Earnings per Share (EPS): Hess's EPS reflects a decline, falling below the industry average with a current EPS of 1.344584.
In-Depth Valuation Examination:
- Price to Earnings (P/E) Ratio: Hess's current Price to Earnings (P/E) ratio of 33.26 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.
- Price to Sales (P/S) Ratio: The current P/S ratio of 4.37 is above industry norms, reflecting an elevated valuation for Hess's stock and potential overvaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 10.46 positions the company as being more valued compared to industry benchmarks.
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Unmasking the Significance of Insider Transactions Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
Exploring Key Transaction Codes Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed 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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