Sell Alert: Desmond Mills Cashes Out $1.31M In Weatherford International Stock

Making a noteworthy insider sell on February 10, Desmond Mills, SVP & Chief Accounting Officer at Weatherford International WFRD, is reported in the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Mills sold 19,425 shares of Weatherford International. The total transaction amounted to $1,311,468.

During Tuesday's morning session, Weatherford International shares down by 0.49%, currently priced at $67.57.

Unveiling the Story Behind Weatherford International

Weatherford International provides diversified oilfield services across international markets for an array of oilfield types. The firm is a global market leader in artificial lift and tubular running services. Other key product lines include cementing products, directional drilling, and wireline evaluation.

Key Indicators: Weatherford International's Financial Health

Revenue Growth: Over the 3 months period, Weatherford International showcased positive performance, achieving a revenue growth rate of 7.31% as of 30 September, 2024. This reflects a substantial increase in the company's 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 Energy sector.

Analyzing Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 34.92%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Weatherford International's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.117486.

Debt Management: Weatherford International's debt-to-equity ratio is below the industry average. With a ratio of 1.35, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The P/E ratio of 10.06 is lower than the industry average, implying a discounted valuation for Weatherford International's stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.92 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering 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 4.69, Weatherford International presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Unmasking the Significance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Important 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 Weatherford International's Insider Trades.

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