Benzinga - by Benzinga Insights, Benzinga Staff Writer.
It was reported on April 30, that Ron Gusek, President at Liberty Energy (NYSE:LBRT) executed a significant insider sell, according to an SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Gusek executed a sale of 92,397 shares of Liberty Energy with a total value of $2,112,009.
As of Wednesday morning, Liberty Energy shares are up by 0.95%, currently priced at $22.21.
Get to Know Liberty Energy Better Liberty Energy is an oilfield services company that provides hydraulic fracturing services—mainly pressure pumping—in major basins throughout North America. Its 2020 acquisition of Schlumberger's OneStim business segment made Liberty one of the largest pressure pumpers in North America. It also added wireline operations, two Permian frac sand mines, and an expanded technological portfolio.
Understanding the Numbers: Liberty Energy's Finances Revenue Growth: Liberty Energy's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -14.97%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.
Interpreting Earnings Metrics:
- Gross Margin: With a low gross margin of 15.59%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
- Earnings per Share (EPS): Liberty Energy's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.49.
Navigating Market Valuation:
- Price to Earnings (P/E) Ratio: The P/E ratio of 8.06 is lower than the industry average, implying a discounted valuation for Liberty Energy's stock.
- Price to Sales (P/S) Ratio: The P/S ratio of 0.84 is lower than the industry average, implying a discounted valuation for Liberty Energy's stock in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 3.7 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
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Illuminating the Importance of Insider Transactions Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Deciphering Transaction Codes in Insider Filings When analyzing transactions, investors tend to focus on those in the open market, 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 signals 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 Liberty Energy's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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