Director Of Weatherford International Makes $143K Sale

It was reported on January 22, that Jacqueline Mutschler, Director at Weatherford International WFRD executed a significant insider sell, according to an SEC filing.

What Happened: Mutschler's recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled the sale of 1,517 shares of Weatherford International. The total transaction value is $143,356.

Weatherford International's shares are actively trading at $96.61, experiencing a up of 1.39% during Tuesday's morning session.

Get to Know Weatherford International Better

Weatherford International provides diversified oilfield services worldwide for an array of oilfield types. The firm is a global market leader in artificial lift and tubular running services. Other key product lines include cementing products, directional drilling, and wireline evaluation.

A Deep Dive into Weatherford International's Financials

Revenue Growth: Weatherford International's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 17.23%. This signifies 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.

Key Insights into Profitability Metrics:

• Gross Margin: With a high gross margin of 34.58%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.7, Weatherford International showcases strong earnings per share.

Debt Management: Weatherford International's debt-to-equity ratio surpasses industry norms, standing at 2.87. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Market Valuation:

• Price to Earnings (P/E) Ratio: Weatherford International's P/E ratio of 19.98 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 1.4 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 8.11 reflects market recognition of Weatherford International's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

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.

Essential Transaction Codes Unveiled

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously 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 indicates 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 Weatherford International's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.