Dorian LPG Board Member Sold $445K In Company Stock

Revealing a significant insider sell on December 20, Christina Tan, Board Member at Dorian LPG LPG, as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Tan sold 10,000 shares of Dorian LPG. The total transaction amounted to $445,000.

In the Thursday's morning session, Dorian LPG's shares are currently trading at $45.07, experiencing a up of 1.19%.

Get to Know Dorian LPG Better

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: Delving into Financials

Positive Revenue Trend: Examining Dorian LPG's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 90.47% as of 30 September, 2023, showcasing a substantial increase 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.

Profitability Metrics:

• Gross Margin: With a high gross margin of 64.54%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Dorian LPG's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 1.9.

Debt Management: Dorian LPG's debt-to-equity ratio is below the industry average. With a ratio of 0.91, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 7.01 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 3.64 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Dorian LPG's EV/EBITDA ratio, lower than industry averages at 6.62, indicates attractively priced shares.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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.

The Insider's Guide to Important Transaction Codes

When it comes to 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 indicates 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.

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