Dorian LPG President and CEO Makes $532K Stock Purchase

On April 10, a substantial insider purchase was made by John C Hadjipateras, President and CEO at Dorian LPG LPG, as per the latest SEC filing.

What Happened: In a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, it was disclosed that Hadjipateras bought 30,000 shares of Dorian LPG, amounting to a total of $532,500.

Monitoring the market, Dorian LPG's shares up by 4.62% at $19.03 during Friday's morning.

Unveiling the Story Behind Dorian LPG

Dorian LPG Ltd is an international liquefied petroleum gas shipping company focused on owning and operating gas carriers, or VLGCs. The company currently owns and operates around 22 modern VLGCs, including nineteen new fuel-efficient 84,000 cbm ECO-design VLGCs. Dorian LPG has offices in Connecticut, USA, London, United Kingdom, and Athens, Greece.

Dorian LPG's Economic Impact: An Analysis

Revenue Growth: Dorian LPG's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -50.53%. This indicates a decrease 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.

Key Profitability Indicators:

• Gross Margin: Achieving a high gross margin of 37.43%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Dorian LPG's EPS is below the industry average. The company faced challenges with a current EPS of 0.5. This suggests a potential decline in earnings.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.69.

Market Valuation:

• Price to Earnings (P/E) Ratio: Dorian LPG's P/E ratio of 4.66 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.81 is above industry norms, reflecting an elevated valuation for Dorian LPG's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Dorian LPG's EV/EBITDA ratio at 4.46 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Why Insider Transactions Are Important

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

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.

Transaction Codes To Focus On

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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 Dorian LPG's Insider Trades.

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