In a notable transaction, Control Empresarial de Capitales S.A. de C.V. has acquired a substantial amount of PBF Energy Inc. (NYSE:PBF) shares, totaling approximately $40.8 million. The purchases were made in two separate transactions on consecutive days.
On the first day, shares were bought at a weighted average price of $32.6165, with the total number of shares acquired being 805,300. The following day, an additional 452,500 shares were purchased at a slightly lower weighted average price of $32.1487. The transactions took place within the price ranges of $32.02 to $32.265 and $32.195 to $33.12, respectively.
These transactions have increased Control Empresarial de Capitales' ownership stake in PBF Energy, as detailed in the SEC filing. Following the purchases, the total number of PBF Energy shares owned by the company amounted to 21,087,398.
Control Empresarial de Capitales is known to be a significant shareholder in PBF Energy, and these recent acquisitions have further solidified their investment in the petroleum refining company. The transactions are of interest to investors watching the movements of major shareholders in the energy sector.
In other recent news, PBF Energy reported a challenging second quarter in 2024, marked by lower earnings due to unfavorable market conditions and maintenance delays. Despite these obstacles, the company managed to maintain a robust cash balance between $1 billion and $1.5 billion. PBF Energy is optimistic about future improvements in the global refining market, despite weak Asian markets impacting the West Coast.
The company highlighted its ongoing catalyst change in its renewable diesel business and plans to double its production from the Trans Mountain Expansion pipeline by the end of the year. PBF Energy's East Coast assets are strategically positioned to address supply deficits, while the West Coast assets remain in the top quartile.
However, the company faced a $100 million loss in profit opportunity due to extended turnaround at Del City and Toledo, and an additional $50 million loss was attributed to weakened market conditions. Despite these challenges, PBF Energy remains committed to shareholder returns through repurchases and dividends, focusing on long-term value.
These recent developments reflect the company's resilience amid market challenges and its strategic focus on future growth opportunities.
InvestingPro Insights
As Control Empresarial de Capitales S.A. de C.V. bolsters its position in PBF Energy Inc. (NYSE:PBF) with substantial share purchases, it's worth noting that the company's management has been actively engaged in share buybacks, signaling confidence in the firm's prospects. This strategic move aligns with PBF Energy's high shareholder yield, which is a positive indicator for investors seeking returns. For those keeping a close eye on PBF Energy's financial health, it's reassuring to see that the company's liquid assets exceed its short-term obligations, providing a cushion for operational flexibility.
From a valuation standpoint, PBF Energy is currently trading at a low revenue valuation multiple, with a P/E ratio of 5.01 and an adjusted P/E ratio over the last twelve months as of Q2 2024 at 4.55. While the company's revenue has seen a decline of 11.43% over the last twelve months as of Q2 2024, PBF Energy maintains a gross profit margin of 5.66%, which, although not robust, reflects its ability to generate earnings above its cost of goods sold.
Investors should be aware that analysts have revised their earnings expectations downwards for the upcoming period, which may impact the stock's performance. However, PBF Energy's net income is expected to remain profitable this year, with a dividend yield of 3.09% as of the latest data, and a notable dividend growth of 25.0% over the last twelve months as of Q2 2024. For further insights, there are 12 additional InvestingPro Tips available for PBF Energy at InvestingPro, offering a deeper dive into the company's financials and market position.
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