M. Kevin McEvoy Executes Sell Order: Offloads $252K In Oceaneering International Stock

On August 21, a recent SEC filing unveiled that M. Kevin McEvoy, Director at Oceaneering International OII made an insider sell.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that McEvoy sold 9,675 shares of Oceaneering International. The total transaction amounted to $252,711.

The latest market snapshot at Thursday morning reveals Oceaneering International shares down by 0.0%, trading at $26.02.

All You Need to Know About Oceaneering International

Oceaneering International Inc is a global provider of engineered services and products robotic solutions to the offshore energy, defense, aerospace, manufacturing and entertainment industries. Most of Oceaneering's products are produced for the offshore oil and gas market. It had a 2020 segment realignment to promote synergies and cost efficiency. The five segments are subsea robotics; manufactured products; offshore projects group; integrity management and digital solutions; and aerospace and defense technologies. Within the segments are two businesses - services and products provided primarily to the oil and gas industry. The firm is also involved in the offshore renewables and mobility solutions industries.

Oceaneering International: A Financial Overview

Positive Revenue Trend: Examining Oceaneering International's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 11.86% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Energy sector.

Key Profitability Indicators:

• Gross Margin: The company shows a low gross margin of 17.97%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Oceaneering International's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.34.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.37.

Market Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 21.5 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.04 is lower than the industry average, implying a discounted valuation for Oceaneering International's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 9.61, Oceaneering International demonstrates exemplary market valuation, surpassing industry averages.

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.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted 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.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Transaction Codes To Focus On

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 Oceaneering International's Insider Trades.

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