Benzinga - by Benzinga Insights, Benzinga Staff Writer.
It was reported on January 25, that Howard Guild, Chief Accounting Officer at Schlumberger (NYSE:SLB) executed a significant insider sell, according to an SEC filing.
What Happened: Guild's decision to sell 22,853 shares of Schlumberger was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $1,180,585.
Schlumberger's shares are actively trading at $52.39, experiencing a down of 0.15% during Friday's morning session.
Delving into Schlumberger's Background 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 Insights: Schlumberger Revenue Growth: Schlumberger's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 14.12%. This signifies a substantial 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.
Key Profitability Indicators:
- Gross Margin: The company shows a low gross margin of 19.98%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
- 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.
Financial Valuation:
- Price to Earnings (P/E) Ratio: Schlumberger's P/E ratio of 18.03 is below the industry average, suggesting the stock may be undervalued.
- Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 2.29, Schlumberger's stock is perceived as being overvalued in the market, particularly in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Schlumberger's EV/EBITDA ratio of 10.98 exceeds industry averages, indicating a premium valuation in the market
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Unmasking the Significance of Insider Transactions Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
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.
A Deep Dive into Insider Transaction Codes In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Schlumberger's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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