Chief Operating Officer At Global Partners Sells $794K Of Stock

A substantial insider sell was reported on March 25, by Mark Romaine, Chief Operating Officer at Global Partners GLP, based on the recent SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, Romaine sold 15,006 shares of Global Partners. The total transaction value is $794,327.

Monitoring the market, Global Partners's shares down by 0.8% at $53.11 during Wednesday's morning.

Delving into Global Partners's Background

Global Partners LP is a limited partnership that acts as a midstream logistics and marketing company. It is mainly engaged in purchasing, selling, storing and logistics of transporting petroleum and related products. The company owns and operates and control terminal networks of refined petroleum products and renewable fuels in Massachusetts, Maine, Connecticut, Vermont, and other places. It distributes gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, natural gas and propane to wholesalers, retailers and commercial customers. The company operates through three segments i.e. Wholesale, Gasoline Distribution and Station Operations and Commercial. It generates maximum revenue from the Wholesale segment.

A Deep Dive into Global Partners's Financials

Negative Revenue Trend: Examining Global Partners's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -5.05% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 6.42%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Global Partners's EPS reflects a decline, falling below the industry average with a current EPS of 0.53.

Debt Management: Global Partners's debt-to-equity ratio is below the industry average at 2.83, reflecting a lower dependency on debt financing and a more conservative financial approach.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: Global Partners's current Price to Earnings (P/E) ratio of 22.22 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.11, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 9.81 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Exploring the Significance of Insider Trading

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per 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.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Important Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Global Partners's Insider Trades.

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