Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Rayford Wilkins Jr., Director at Valero Energy (NYSE:VLO), executed a substantial insider sell on May 13, according to an SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Jr. sold 428 shares of Valero Energy. The total transaction amounted to $67,677.
As of Tuesday morning, Valero Energy shares are down by 0.53%, currently priced at $155.1.
All You Need to Know About Valero Energy Valero Energy is one of the largest independent refiners in the United States. It operates 15 refineries with a total throughput capacity of 3.2 million barrels a day in the United States, Canada, and the United Kingdom. Valero also owns 12 ethanol plants with capacity of 1.6 billion gallons a year and holds a 50% stake in Diamond Green Diesel, which has capacity to produce 1.2 billion gallons per year of renewable diesel.
A Deep Dive into Valero Energy's Financials Revenue Challenges: Valero Energy's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -12.84%. This indicates a decrease in 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 issues a cost efficiency warning with a low gross margin of 6.21%, indicating potential difficulties in maintaining profitability compared to its peers.
- Earnings per Share (EPS): Valero Energy's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 3.75.
Valuation Metrics: A Closer Look
- Price to Earnings (P/E) Ratio: Valero Energy's P/E ratio of 7.65 is below the industry average, suggesting the stock may be undervalued.
- Price to Sales (P/S) Ratio: With a P/S ratio of 0.38 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 4.47, Valero Energy's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation
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Why Pay Attention to Insider Transactions Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
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.
Transaction Codes To Focus On Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 Valero Energy's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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