Peabody Energy 10% Owner Trades $43.72M In Company Stock

Elliott Investment Management LP, 10% Owner at Peabody Energy BTU, reported an insider sell on December 21, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that LP sold 1,800,000 shares of Peabody Energy. The total transaction amounted to $43,724,500.

The latest update on Friday morning shows Peabody Energy shares down by 0.33%, trading at $24.27.

Get to Know Peabody Energy Better

Peabody Energy Corp is a producer of metallurgical and thermal coal. It also markets and brokers coal, both as principal and agent, and trades coal and freight-related contracts. The company operates in the following segment: Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining, Midwestern U.S. Mining, Other U.S. Thermal Mining, and Corporate and Other.

Peabody Energy's Financial Performance

Negative Revenue Trend: Examining Peabody Energy's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -19.63% 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.

Evaluating Earnings Performance:

• Gross Margin: The company faces challenges with a low gross margin of 25.51%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Peabody Energy's EPS is below the industry average. The company faced challenges with a current EPS of 0.9. 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 0.1.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The P/E ratio of 3.19 is lower than the industry average, implying a discounted valuation for Peabody Energy's stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.72 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): At 1.39, Peabody Energy's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

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Unmasking the Significance of Insider Transactions

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

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

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

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 Peabody Energy's Insider Trades.

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