Benzinga - by Benzinga Insights, Benzinga Staff Writer.
It was reported on January 25, that Khaled Mogharbel Al, EVP at Schlumberger (NYSE:SLB) executed a significant insider sell, according to an SEC filing.
What Happened: Al's recent move involves selling 29,621 shares of Schlumberger. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $1,501,192.
The latest market snapshot at Friday morning reveals Schlumberger shares up by 0.2%, trading at $52.58.
Get to Know Schlumberger Better SLB, formerly known as Schlumberger, is the largest oilfield service firm in the world, with expertise in myriad disciplines, including reservoir performance, well construction, production enhancement, and more recently, digital solutions. It maintains a reputation as one of the industry's leading innovators, which has earned it dominant share in numerous end markets.
Financial Milestones: Schlumberger's Journey Revenue Growth: Schlumberger displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 14.12%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.
Holistic Profitability Examination:
- Gross Margin: The company issues a cost efficiency warning with a low gross margin of 19.98%, indicating potential difficulties in maintaining profitability compared to its peers.
- Earnings per Share (EPS): Schlumberger's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.778866.
Assessing Valuation Metrics:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 18.03 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: The current P/S ratio of 2.29 is above industry norms, reflecting an elevated valuation for Schlumberger's stock and potential overvaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 10.98, Schlumberger demonstrates a robust market valuation, outperforming industry benchmarks.
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Why Insider Transactions Are Key in Investment Decisions Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Important Transaction Codes Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Schlumberger's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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