Depinder Sandhu, EVP at Weatherford International (NASDAQ:WFRD), reported an insider sell on February 10, according to a new SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Sandhu sold 14,000 shares of Weatherford International. The total transaction amounted to $929,740.
In the Tuesday's morning session, Weatherford International's shares are currently trading at $67.57, experiencing a down of 0.49%.
All You Need to Know About Weatherford International
Weatherford International provides diversified oilfield services across international markets for an array of oilfield types. The firm is aglobal marketleader in artificial lift and tubular running services. Other key product lines include cementing products, directional drilling, and wireline evaluation.
Breaking Down Weatherford International's Financial Performance
Revenue Growth: Over the 3 months period, Weatherford International showcased positive performance, achieving a revenue growth rate of 7.31% as of 30 September, 2024. This reflects a substantial increase in the company's 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.
Profitability Metrics:
Gross Margin: With a high gross margin of 34.92%, the company demonstrates effective cost control and strong profitability relative to its peers.
Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 2.117486, Weatherford International showcases strong earnings per share.
Debt Management: Weatherford International's debt-to-equity ratio is below the industry average. With a ratio of 1.35, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Financial Valuation Breakdown:
Price to Earnings (P/E) Ratio: The current P/E ratio of 10.06 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
Price to Sales (P/S) Ratio: With a P/S ratio of 0.92 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): Weatherford International's EV/EBITDA ratio at 4.69 suggests potential undervaluation, falling below industry averages.
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
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Why Insider Transactions Are Key in Investment Decisions
Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
A Deep Dive into Insider Transaction Codes
Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.
Check Out The Full List Of Weatherford International's Insider Trades.
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