Massive Insider Trade At Weatherford International

Revealing a significant insider sell on February 12, Benjamin Duster, Board Member at Weatherford International WFRD, as per the latest SEC filing.

What Happened: Duster's decision to sell 24,000 shares of Weatherford International was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $2,334,745.

In the Tuesday's morning session, Weatherford International's shares are currently trading at $97.62, experiencing a down of 0.0%.

Unveiling the Story Behind Weatherford International

Weatherford International provides diversified oilfield services across international markets 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 Insights: Weatherford International

Revenue Growth: Weatherford International displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 12.66%. This indicates a notable increase 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.

Navigating Financial Profits:

• Gross Margin: With a high gross margin of 33.99%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Weatherford International's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.94.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.23, caution is advised due to increased financial risk.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The P/E ratio of 17.26 is lower than the industry average, implying a discounted valuation for Weatherford International's stock.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 1.41 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Weatherford International's EV/EBITDA ratio stands at 8.13, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

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 Key in Investment Decisions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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.

Cracking 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.