Insider Unloading: Joseph Mongrain Sells $1.53M Worth Of Weatherford International Shares

A substantial insider sell was reported on December 7, by Joseph Mongrain, EVP & Chief People Officer at Weatherford International WFRD, based on the recent SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Mongrain sold 17,071 shares of Weatherford International. The total transaction value is $1,534,853.

As of Friday morning, Weatherford International shares are up by 1.02%, currently priced at $85.9.

Get to Know Weatherford International Better

Weatherford International provides diversified oilfield services worldwide for an array of oilfield types. The firm is a global market leader in artificial lift and tubular running services. Other key product lines include cementing products, directional drilling, and wireline evaluation.

Financial Milestones: Weatherford International's Journey

Revenue Growth: Weatherford International displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 17.23%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Energy sector.

Analyzing Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 34.58%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Weatherford International's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.7.

Debt Management: Weatherford International's debt-to-equity ratio surpasses industry norms, standing at 2.87. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 17.83 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.25, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 7.38, Weatherford International demonstrates a robust market valuation, outperforming industry benchmarks.

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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Exploring the Significance of Insider Trading

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

The Insider's Guide to 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 Weatherford International's Insider Trades.

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