Senior Vice President At PBF Energy Exercises Options Worth $2.75M

A significant insider transaction involving the exercise of company stock options was reported on March 27, by T. Paul Davis, Senior Vice President at PBF Energy PBF, as per the latest SEC filing.

What Happened: Davis, Senior Vice President at PBF Energy, made a strategic move by exercising stock options for 100,000 shares of PBF as detailed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission. The transaction value amounted to $2,754,000.

During Wednesday's morning session, PBF Energy shares down by 0.25%, currently priced at $55.2. Considering the current price, Davis's 100,000 shares have a total value of $2,754,000.

Discovering PBF Energy: A Closer Look

PBF Energy Inc is an independent petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants, and other petroleum products in the United States. The company owns refineries in Delaware, Ohio, New Jersey, California, and Louisiana. The Company operates in two reportable business segments: Refining and Logistics. The Company's oil refineries are all engaged in the refining of crude oil and other feedstocks into petroleum products and are aggregated into the Refining segment. PBFX operates logistics assets such as crude oil and refined products terminals, pipelines and storage facilities. The Logistics segment consists solely of PBFX's operations.

PBF Energy: A Financial Overview

Revenue Growth: PBF Energy's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -15.74%. This indicates a decrease in the company's top-line earnings. When compared to others in the Energy sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Evaluating Earnings Performance:

• Gross Margin: The company faces challenges with a low gross margin of 0.92%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, PBF Energy exhibits below-average bottom-line performance with a current EPS of -0.4.

Debt Management: PBF Energy's debt-to-equity ratio is below the industry average. With a ratio of 0.32, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: PBF Energy's P/E ratio of 3.35 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.19, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 1.94, PBF Energy presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Exploring the Significance of Insider Trading

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to 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.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Breaking Down the Significance of 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 PBF Energy's Insider Trades.

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