Dallas, TX – In a recent transaction, Austin Harkness, the Executive Vice President - Commercial of Sunoco LP (NYSE:SUN), has purchased shares of the company's common stock, signaling confidence in the petroleum refining giant. The transaction, which took place on May 29, 2024, involved the acquisition of 1,000 shares at a price of $49.74 each, amounting to a total investment of $49,740.
This purchase has increased Harkness's direct ownership in Sunoco LP to a total of 83,686 common units, as per the latest filing with the Securities and Exchange Commission. The transaction comes at a time when insider buying can be seen as a positive indicator of an executive's belief in the company's current value and future prospects.
Investors often monitor such insider transactions as they provide insights into the actions of those who are potentially the most informed about the company's financial health and business trajectory. The buying price of $49.74 per share provides a reference for the current valuation of Sunoco LP's stock in the eyes of company insiders.
Sunoco LP, with its significant presence in the petroleum refining sector, operates with a focus on energy and transportation. The company has a history that dates back to its former name, Susser Petroleum Partners LP, and has since grown to establish a strong footprint in the industry.
As the market processes this insider transaction, stakeholders and potential investors will be watching closely to see how this vote of confidence from an executive insider might influence Sunoco LP's stock performance in the upcoming period.
InvestingPro Insights
Following the recent insider purchase by Executive Vice President Austin Harkness, Sunoco LP (NYSE:SUN) presents a mix of financial metrics that may offer further context to investors. With a market capitalization of $4.2 billion, the company's size in the petroleum refining sector remains substantial. The P/E ratio, a measure of a company's current share price relative to its per-share earnings, stands at 10.95, with a slight adjustment to 11.06 when considering the last twelve months as of Q1 2024.
Investors looking at growth relative to earnings may note Sunoco's PEG ratio of 0.57 for the same period, which could suggest a potentially undervalued stock if the company's earnings are expected to increase. Additionally, the company's dividend yield as of May 10, 2024, is notably high at 7.04%, paired with a dividend growth of 6.07% from the last twelve months as of Q1 2024. This could appeal to income-focused investors, particularly in contrast to the broader market's dividend offerings.
Despite recent price volatility, with a one-month total return of -10.26% and a year-to-date return of -14.52%, the company's one-year total return stands at a positive 23.42%. This contrast in short-term and long-term performance might indicate a window of opportunity for those who align with the executive's confidence in the stock. The current price is at 76.64% of its 52-week high, which could be seen as a potential entry point for value investors.
InvestingPro Tips: Sunoco's recent insider purchase, combined with its dividend yield and the current price relative to its 52-week high, could be signals for investors to consider. For those looking to delve deeper, InvestingPro offers additional insights and metrics; users can access these by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are currently 12 additional tips available on InvestingPro that could provide further guidance for investors interested in Sunoco LP's financial health and investment potential.
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