Stephane Biguet Takes Money Off The Table, Sells $2.50M In Schlumberger Stock

Disclosed on July 22, Stephane Biguet, EVP & CFO at Schlumberger SLB, executed a substantial insider sell as per the latest SEC filing.

What Happened: Biguet's decision to sell 50,048 shares of Schlumberger was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $2,499,397.

At Tuesday morning, Schlumberger shares are up by 0.32%, trading at $49.6.

Get to Know Schlumberger Better

SLB is the largest oilfield service firm in the world, with expertise in myriad disciplines, including reservoir performance, well construction, production enhancement, and more recently, digital solutions. It maintains a reputation as one of the industry's leading innovators, which has earned it dominant share in numerous end markets.

Financial Milestones: Schlumberger's Journey

Revenue Growth: Schlumberger's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 4.96%. This signifies a substantial increase 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.

Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 20.54%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Schlumberger's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.778711.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.59.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 16.16 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 2.03, Schlumberger's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Schlumberger's EV/EBITDA ratio, surpassing industry averages at 9.95, positions it with an above-average valuation in the market.

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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.

Unlocking the Meaning of Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Schlumberger's Insider Trades.

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