Insider Unloading: R. Sean Elliott Sells $410K Worth Of Liberty Energy Shares

Revealing a significant insider sell on January 31, R. Sean Elliott, Chief Legal Officer at Liberty Energy LBRT, as per the latest SEC filing.

What Happened: Elliott's recent move involves selling 20,000 shares of Liberty Energy. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value is $410,008.

Tracking the Thursday's morning session, Liberty Energy shares are trading at $20.79, showing a down of 0.0%.

Get to Know Liberty Energy Better

Liberty Energy is an oilfield services company that provides hydraulic fracturing services—mainly pressure pumping—in major basins throughout North America. Its 2020 acquisition of Schlumberger's OneStim business segment made Liberty one of the largest pressure pumpers in North America. It also added wireline operations, two Permian frac sand mines, and an expanded technological portfolio.

A Deep Dive into Liberty Energy's Financials

Decline in Revenue: Over the 3 months period, Liberty Energy faced challenges, resulting in a decline of approximately -11.59% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.

Key Profitability Indicators:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 16.68%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Liberty Energy's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.55.

Debt Management: Liberty Energy's debt-to-equity ratio is below the industry average. With a ratio of 0.22, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 6.6 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.77, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 5.08, Liberty Energy's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Delving Into the Significance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per 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.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

A Closer Look at Important Transaction Codes

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 Liberty Energy's Insider Trades.

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