Insider Decision: Vaishali Bhatia Offloads $1.00M Worth Of HF Sinclair Stock

Vaishali Bhatia, EVP at HF Sinclair DINO, disclosed an insider sell on December 5, according to a recent SEC filing.

What Happened: Bhatia's decision to sell 18,465 shares of HF Sinclair was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $1,001,541.

The latest update on Wednesday morning shows HF Sinclair shares down by 0.42%, trading at $54.12.

All You Need to Know About HF Sinclair

HF Sinclair is an integrated petroleum refiner that owns and operates seven refineries serving the Rockies, midcontinent, Southwest, and Pacific Northwest, with a total crude oil throughput capacity of 678,000 barrels per day. It can produce 380 million gallons of renewable diesel annually. It holds a marketing business with over 300 distributors and 1,500 wholesale branded sites across 30 states. It also has a 47% ownership stake in Holly Energy Partners, which owns and operates petroleum product pipelines and terminals principally in the southwestern United States, but has announced a proposal to purchase the remaining 53%.

HF Sinclair's Economic Impact: An Analysis

Decline in Revenue: Over the 3 months period, HF Sinclair faced challenges, resulting in a decline of approximately -15.98% in revenue growth as of 30 September, 2023. This signifies a reduction in the company's 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.

Exploring Profitability:

• Gross Margin: The company excels with a remarkable gross margin of 20.42%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): HF Sinclair's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 4.23.

Debt Management: With a below-average debt-to-equity ratio of 0.36, HF Sinclair adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 4.73 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.32 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 2.78, HF Sinclair's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Delving Into the Significance of Insider Transactions

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

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Important Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously 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 indicates 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 HF Sinclair's Insider Trades.

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