John Regan Executes Sell Order: Offloads $628K In Fluor Stock

A substantial insider sell was reported on August 15, by John Regan, EVP at Fluor FLR, based on the recent SEC filing.

What Happened: After conducting a thorough analysis, Regan sold 13,000 shares of Fluor. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total transaction value is $628,039.

As of Friday morning, Fluor shares are down by 0.0%, currently priced at $49.2.

Get to Know Fluor Better

Fluor is one of the largest global providers of engineering, procurement, construction, fabrication, operations, and maintenance services. The firm serves a wide range of end markets including oil and gas, chemicals, mining, metals, and transportation. The company's business is organized into three core segments: urban solutions, mission solutions, and energy solutions. Fluor generated $15.5 billion in revenue in 2023.

A Deep Dive into Fluor's Financials

Revenue Growth: Fluor's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 7.31%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Navigating Financial Profits:

• Gross Margin: With a low gross margin of 4.21%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Fluor's EPS is below the industry average. The company faced challenges with a current EPS of 0.99. This suggests a potential decline in earnings.

Debt Management: With a below-average debt-to-equity ratio of 0.53, Fluor adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 21.21, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.53 is lower than the industry average, implying a discounted valuation for Fluor's stock in relation to 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 9.64, Fluor presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

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Unmasking the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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.

Important Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Fluor's Insider Trades.

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