BRUCE BERKOWITZ Takes Money Off The Table, Sells $10.36M In St. Joe Stock

It was reported on March 20, that BRUCE BERKOWITZ, 10% Owner at St. Joe JOE executed a significant insider sell, according to an SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, BERKOWITZ sold 220,400 shares of St. Joe. The total transaction value is $10,358,829.

The latest market snapshot at Friday morning reveals St. Joe shares down by 1.4%, trading at $46.13.

All You Need to Know About St. Joe

The St. Joe Co is a real estate development, asset management, and operating company and it has three operating segments; the Residential segment plans and develops residential communities and sells homesites to homebuilders or retail consumers, the Hospitality segment that derives maximum revenue, features a private membership club, hotel operations, food and beverage operations, golf courses, beach clubs, retail outlets, gulf-front vacation rentals, management services, marinas, and other entertainment assets, and Commercial segment include leasing of commercial property, multi-family, senior living, self-storage, and other assets and it also oversees the planning, development, entitlement, management, and sale of commercial and rural land holdings.

A Deep Dive into St. Joe's Financials

Positive Revenue Trend: Examining St. Joe's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 20.29% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Real Estate sector, the company excelled with a growth rate higher than the average among peers.

Profitability Metrics: Unlocking Value

• Gross Margin: The company excels with a remarkable gross margin of 46.26%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): St. Joe's EPS reflects a decline, falling below the industry average with a current EPS of 0.32.

Debt Management: With a high debt-to-equity ratio of 0.86, St. Joe faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 36.84 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 6.78, St. Joe'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): With an EV/EBITDA ratio of 18.29, the company's market valuation exceeds industry averages.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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Delving Into the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Unlocking the Meaning of Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 St. Joe's Insider Trades.

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