St. Joe Insider Trades Send A Signal

A substantial insider sell was reported on April 30, by BRUCE BERKOWITZ, Board Member at St. Joe JOE, based on the recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that BERKOWITZ executed a sale of 4,100 shares of St. Joe with a total value of $242,315.

The latest market snapshot at Wednesday morning reveals St. Joe shares down by 0.0%, trading at $57.2.

Delving into St. Joe's Background

The St. Joe Co is a real estate development, asset management, and operating company and it has three operating segments; the Residential segment plans and develops residential communities and sells homesites to homebuilders or retail consumers, the Hospitality segment features a private membership club (the Watersound Club), hotel operations, food and beverage operations, golf courses, beach clubs, retail outlets, gulf-front vacation rentals, management services, marinas, and other entertainment assets, and Commercial segment include leasing of commercial property, multi-family, senior living, self-storage, and other assets and it also oversees the planning, development, entitlement, management, and sale of commercial and rural land holdings.

Breaking Down St. Joe's Financial Performance

Positive Revenue Trend: Examining St. Joe's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 20.27% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Real Estate sector.

Analyzing Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 39.0%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): St. Joe's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.24.

Debt Management: St. Joe's debt-to-equity ratio stands notably higher than the industry average, reaching 0.92. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Financial Valuation:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 41.15 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 8.26 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 21.54, St. Joe's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Importance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Important 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 St. Joe's Insider Trades.

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