Control Empresarial de Capitales S.A. de C.V., a significant shareholder of PBF Energy Inc. (NYSE:PBF), has recently increased its stake in the company. According to a recent SEC filing, Control Empresarial purchased a total of 250,000 Class A Common Shares over two consecutive days, November 19 and November 20. The shares were acquired at prices ranging from $31.19 to $31.50 per share, with a total transaction value of approximately $7.8 million.
Following these transactions, Control Empresarial's total holdings in PBF Energy have risen to 26,682,498 shares. This acquisition underscores the firm's continued confidence in PBF Energy, a company engaged in petroleum refining.
In other recent news, PBF Energy had a challenging third quarter in 2024, with its earnings falling short of market expectations due to weaker refining margins. The company reported an adjusted net loss of $1.50 per share and an adjusted EBITDA loss of $60.1 million. Despite the tough quarter, PBF Energy announced a 10% increase in its dividend, hinting at its financial stability and a positive outlook for the refining market in 2025.
Mizuho (NYSE:MFG) Securities responded to these developments by revising PBF Energy's stock price target from $36 to $33, while maintaining a Neutral rating on the stock. The firm's revised price target is based on a net asset value approach and reflects a cautious perspective on the refining industry's near to medium-term prospects.
PBF Energy's guidance for the fourth quarter indicates a decrease in volume due to scheduled turnaround at the Chalmette refinery and adjustments in response to current economic conditions. Despite a $29 million loss from its equity investment in St. Bernard Renewables, PBF Energy remains strategically positioned for growth.
The company is also exploring asset monetization opportunities, including excess real estate in Delaware, and anticipates capital expenditures for 2025 to be between $750 million to $800 million. PBF Energy is targeting $200 million in run rate cash savings by the end of 2025, showcasing confidence in its long-term prospects.
InvestingPro Insights
The recent insider buying by Control Empresarial de Capitales S.A. de C.V. aligns with broader trends observed in PBF Energy's financial landscape. According to InvestingPro data, PBF Energy's stock is currently trading at $31.63, which is 51.13% of its 52-week high, suggesting potential room for growth. This could be one of the factors influencing the insider's decision to increase their stake.
An InvestingPro Tip reveals that management has been aggressively buying back shares, which, coupled with the insider purchase, may signal confidence in the company's future prospects. Additionally, PBF Energy boasts a high shareholder yield, potentially making it an attractive option for value-oriented investors.
Despite these positive signals, it's worth noting that PBF Energy faces some challenges. The company's revenue growth has declined by 12.81% over the last twelve months, and its EBITDA has seen a significant drop of 99.54% in the same period. These figures may explain why 11 analysts have revised their earnings downwards for the upcoming period, as indicated by another InvestingPro Tip.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide valuable insights into PBF Energy's financial health and future prospects.
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