Insider Transaction: William Nugent Sells $194K Worth Of International Seaways Shares

Making a noteworthy insider sell on May 22, William Nugent, Senior Vice President at International Seaways INSW, is reported in the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Nugent sold 3,000 shares of International Seaways. The total transaction amounted to $194,113.

International Seaways's shares are actively trading at $67.2, experiencing a up of 5.0% during Thursday's morning session.

Delving into International Seaways's Background

International Seaways Inc owns and operates a fleet of oceangoing vessels engaged in the transportation of crude oil and petroleum products. The company's vessel operations are organized into two segments: Crude Tankers and Product Carriers. The fleet consists of ULCC, VLCC, Suezmax, Aframax, and Panamax crude tankers, as well as LR1, LR2, and MR product carriers.

International Seaways: A Financial Overview

Negative Revenue Trend: Examining International Seaways's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -4.43% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Energy sector.

Interpreting Earnings Metrics:

• Gross Margin: Achieving a high gross margin of 60.77%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): International Seaways's EPS reflects a decline, falling below the industry average with a current EPS of 2.95.

Debt Management: International Seaways's debt-to-equity ratio is below the industry average at 0.4, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 5.98 is lower than the industry average, implying a discounted valuation for International Seaways's stock.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.98 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): International Seaways's EV/EBITDA ratio, lower than industry averages at 5.04, indicates attractively priced shares.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Transaction Codes To Focus On

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 International Seaways's Insider Trades.

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