St. Joe Board Member Sold $10.83M In Company Stock

Revealing a significant insider sell on July 30, BRUCE BERKOWITZ, Board Member at St. Joe JOE, as per the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, BERKOWITZ sold 172,100 shares of St. Joe. The total transaction value is $10,825,178.

As of Wednesday morning, St. Joe shares are up by 0.16%, currently priced at $62.36.

All You Need to Know About St. Joe

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.

Financial Insights: St. Joe

Revenue Challenges: St. Joe's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -12.92%. This indicates a decrease in 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 Real Estate sector.

Key Profitability Indicators:

• Gross Margin: The company excels with a remarkable gross margin of 43.52%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): St. Joe's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 0.42.

Debt Management: St. Joe's debt-to-equity ratio stands notably higher than the industry average, reaching 0.89. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 51.03 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 9.37 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 24.43, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

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

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Why Pay Attention to Insider Transactions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, 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 St. Joe's Insider Trades.

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