Board Member Of Gran Tierra Energy Sold $137K In Stock

Ronald Royal, Board Member at Gran Tierra Energy GTE, reported an insider sell on December 4, according to a new SEC filing.

What Happened: Royal opted to sell 19,967 shares of Gran Tierra Energy, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction's total worth stands at $137,372.

Gran Tierra Energy's shares are actively trading at $6.64, experiencing a up of 0.76% during Thursday's morning session.

All You Need to Know About Gran Tierra Energy

Gran Tierra Energy Inc is an independent energy company. It is engaged in the acquisition, exploration, development, and production of oil and gas properties. The firm produces light crude oil, supplemented with medium crude and natural gas. Gran Tierra holds interests in producing and prospective properties in Colombia and prospective properties in Ecuador. The company derives its revenue from Colombia.

Financial Milestones: Gran Tierra Energy's Journey

Negative Revenue Trend: Examining Gran Tierra Energy's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -15.87% in revenue growth, reflecting a decrease 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 Energy sector.

Key Insights into Profitability Metrics:

• Gross Margin: Achieving a high gross margin of 63.29%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Gran Tierra Energy's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.04.

Debt Management: Gran Tierra Energy's debt-to-equity ratio stands notably higher than the industry average, reaching 1.77. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The P/E ratio of 4.61 is lower than the industry average, implying a discounted valuation for Gran Tierra Energy's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.33, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 1.95, Gran Tierra Energy's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Why Insider Activity Matters in Finance

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

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 Gran Tierra Energy's Insider Trades.

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