Sell Alert: NEAL GOLDMAN Cashes Out $65K In Weatherford International Stock

It was reported on January 22, that NEAL GOLDMAN, Director at Weatherford International WFRD executed a significant insider sell, according to an SEC filing.

What Happened: GOLDMAN's recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 887 shares of Weatherford International. The total transaction value is $65,629.

Weatherford International's shares are actively trading at $71.0, experiencing a down of 0.0% during Thursday's morning session.

Delving into Weatherford International's Background

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.

Breaking Down Weatherford International's Financial Performance

Revenue Growth: Over the 3 months period, Weatherford International showcased positive performance, achieving a revenue growth rate of 7.31% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Energy sector.

Evaluating Earnings Performance:

• Gross Margin: Achieving a high gross margin of 34.92%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Weatherford International's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 2.117486.

Debt Management: Weatherford International's debt-to-equity ratio is below the industry average at 1.35, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Overview:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 9.93, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.96 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 4.94, Weatherford International could be considered undervalued.

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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Uncovering the Importance of Insider Activity

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

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

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Exploring Key Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals 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.

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