Weatherford International Insider Trades Send A Signal

Benjamin Duster, Director at Weatherford International WFRD, executed a substantial insider sell on January 22, according to an SEC filing.

What Happened: Duster's decision to sell 1,517 shares of Weatherford International was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $143,356.

Monitoring the market, Weatherford International's shares down by 0.0% at $95.29 during Tuesday's morning.

Unveiling the Story Behind 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: Delving into Financials

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.

Navigating Financial Profits:

• Gross Margin: With a high gross margin of 34.58%, the company demonstrates effective cost control and strong profitability relative to its 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: With a high debt-to-equity ratio of 2.87, Weatherford International faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: Weatherford International's P/E ratio of 19.98 is below the industry average, suggesting the stock may be undervalued.

• 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): A high EV/EBITDA ratio of 8.11 reflects market recognition of Weatherford International's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Understanding the Significance of Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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.

Navigating the World of Insider Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously 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 indicates 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.