Insider Unloading: Erik Staffeldt Sells $631K Worth Of Helix Energy Solns Gr Shares

It was reported on January 15, that Erik Staffeldt, EVP & CFO at Helix Energy Solns Gr HLX executed a significant insider sell, according to an SEC filing.

What Happened: Staffeldt's recent move involves selling 67,791 shares of Helix Energy Solns Gr. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value is $631,812.

As of Thursday morning, Helix Energy Solns Gr shares are up by 1.56%, currently priced at $9.09.

Get to Know Helix Energy Solns Gr Better

Helix Energy Solutions Group Inc is an offshore energy services company. It provides specialty services to the offshore energy industry, with an emphasis on well intervention and robotics operations. Helix provides services in deep water in the Gulf of Mexico, Brazil, the North Sea, Asia Pacific and West Africa regions. It has four segments Well Intervention, Robotics, Production Facilities and Shallow Water Abandonment. the Well Intervention segment includes vessels and equipment used to perform well intervention services in the Gulf of Mexico, the North Sea and Brazil. It derives the majority of its revenue from the US.

Helix Energy Solns Gr: Delving into Financials

Revenue Growth: Helix Energy Solns Gr's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -13.46%. This indicates a decrease in the company's top-line earnings. When compared to others in the Energy sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Profitability Metrics: Unlocking Value

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 19.18%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Helix Energy Solns Gr's EPS is below the industry average. The company faced challenges with a current EPS of 0.19. 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 0.43.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: Helix Energy Solns Gr's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 223.75.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.01, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 6.88 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Understanding the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Cracking 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 Helix Energy Solns Gr's Insider Trades.

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