Director Of Weatherford International Sold $209K In Stock

Making a noteworthy insider sell on January 22, CHARLES SLEDGE, Director at Weatherford International WFRD, is reported in the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday outlined that SLEDGE executed a sale of 2,215 shares of Weatherford International with a total value of $209,317.

At Tuesday morning, Weatherford International shares are down by 0.0%, trading at $95.29.

About Weatherford International

Weatherford International provides diversified oilfield services worldwide for an array of oilfield types. The firm is a global market leader in artificial lift and tubular running services. Other key product lines include cementing products, directional drilling, and wireline evaluation.

Weatherford International: Financial Performance Dissected

Revenue Growth: Weatherford International's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 17.23%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.

Key Insights into Profitability Metrics:

  • Gross Margin: The company excels with a remarkable gross margin of 34.58%, indicating superior cost efficiency and profitability compared to its industry peers.

  • Earnings per Share (EPS): Weatherford International's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.7.

Debt Management: Weatherford International's debt-to-equity ratio stands notably higher than the industry average, reaching 2.87. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Assessing Valuation Metrics:

  • Price to Earnings (P/E) Ratio: The P/E ratio of 19.98 is lower than the industry average, implying a discounted valuation for Weatherford International's stock.

  • Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 1.4 suggests overvaluation in the eyes of investors, considering sales performance.

  • EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 8.11 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Understanding the Significance of Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Essential Transaction Codes Unveiled

When it comes to 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 indicates 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 Weatherford International's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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