Sell Alert: NEAL GOLDMAN Cashes Out $143K In Weatherford International Stock

NEAL GOLDMAN, Board Member at Weatherford International WFRD, reported an insider sell on January 22, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that GOLDMAN sold 1,517 shares of Weatherford International. The total transaction amounted to $143,356.

Monitoring the market, Weatherford International's shares up by 1.39% at $96.61 during Tuesday's morning.

Get to Know Weatherford International Better

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's Economic Impact: An Analysis

Revenue Growth: Weatherford International displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 17.23%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Energy sector.

Insights into Profitability:

• Gross Margin: The company sets a benchmark with a high gross margin of 34.58%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Weatherford International's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.7.

Debt Management: Weatherford International's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.87, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Financial Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 19.98, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.4 is above industry norms, reflecting an elevated valuation for Weatherford International's stock and potential overvaluation based on 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: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Illuminating the Importance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

Cracking Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Weatherford International's Insider Trades.

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