Civeo SVP Trades $123K In Company Stock

Peter McCann, SVP at Civeo CVEO, executed a substantial insider sell on May 1, according to an SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, McCann sold 5,220 shares of Civeo. The total transaction value is $123,975.

At Wednesday morning, Civeo shares are down by 1.16%, trading at $22.95.

Discovering Civeo: A Closer Look

Civeo Corp provides hospitality services to the natural resources industry in Canada, Australia and the United States. The company provides a full suite of services for guests, including lodging, catering and food service, housekeeping and maintenance at accommodation facilities that the company or its customers own. The company provides services that support the day-to-day operations of these facilities, such as laundry, facility management and maintenance, water and wastewater treatments, power generation, communication systems, security and logistics. The company operates in active oil, metallurgical coal, liquefied natural gas and iron ore-producing regions. The company operates in three reportable business segments Canada, Australia and the United States.

Civeo: Financial Performance Dissected

Revenue Growth: Civeo's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -0.88%. This indicates a decrease 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 Industrials sector.

Profitability Metrics: Unlocking Value

• Gross Margin: With a low gross margin of 21.48%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Civeo's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of -0.35.

Debt Management: Civeo's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.3.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 11.16 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.49, 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): With a lower-than-industry-average EV/EBITDA ratio of 3.32, Civeo presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Delving Into 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.

The Insider's Guide to Important Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Civeo's Insider Trades.

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