Control Empresarial de Capitales S.A. de C.V., a significant shareholder in PBF Energy Inc. (NYSE:PBF), has increased its stake in the company with a substantial purchase of Class A Common Shares. The transaction, disclosed in a recent SEC filing, involved the acquisition of 389,000 shares over two days, October 28 and 29, 2024.
The purchases were made at a weighted average price ranging from $29.5813 to $31.584 per share, amounting to a total investment of approximately $11.7 million. Following these transactions, Control Empresarial's total holdings in PBF Energy have risen to 25,340,498 shares.
This move underscores the continued interest and confidence of Control Empresarial, a company linked to the Slim family, in PBF Energy, which is a key player in the petroleum refining industry.
In other recent news, PBF Energy has been the subject of several analyst reviews, with a general trend towards downgraded stock ratings and revised price targets. BofA Securities cut PBF Energy's stock target to $25 and rated it as underperform, citing the company's high dependence on refining and logistics. Citi also revised its price target for PBF Energy to $37, projecting a third-quarter loss of $1.33 per share. Similar adjustments were made by BMO Capital Markets, JPMorgan (NYSE:JPM), and Piper Sandler, all reflecting concerns over the company's future financial performance.
PBF Energy's earnings and revenue have been influenced by various factors, including the volatility of refining margins and the performance of its refineries, most of which are located in markets characterized by lower duration. Despite these challenges, PBF Energy has made significant strides in reducing its debt and strengthening its balance sheet. The company also plans to double its production from the Trans Mountain Expansion pipeline by the end of the year and remains optimistic about the medium to long-term outlook for its renewable diesel business.
These recent developments highlight PBF Energy's strategic focus on addressing regional supply deficits and increasing production amidst a challenging market environment. However, despite the company's efforts, analysts from firms such as JPMorgan suggest that investors may favor larger-cap refiners in the current market environment. This analysis is based on the company's recent financial performance and market trends, not on speculation or subjective assessment.
InvestingPro Insights
The recent share purchase by Control Empresarial de Capitales aligns with several key insights from InvestingPro. An InvestingPro Tip highlights that PBF Energy's management has been aggressively buying back shares, indicating a broader trend of insider confidence in the company's value. This is particularly noteworthy given that the stock is currently trading near its 52-week low and has experienced a significant price drop over the last three and six months.
Despite these challenges, PBF Energy maintains a strong financial position. The company's P/E ratio of 4.5 suggests that it may be undervalued relative to its earnings. Additionally, PBF Energy boasts a high shareholder yield, which could be attractive to investors like Control Empresarial de Capitales who are increasing their stake in the company.
It's worth noting that PBF Energy's revenue for the last twelve months as of Q2 2024 stood at $37.25 billion, although this represents a decline of 11.43% compared to the previous period. The company's dividend yield of 3.44% may also be a factor in Control Empresarial's decision to increase its holdings.
For investors seeking more comprehensive analysis, InvestingPro offers 14 additional tips on PBF Energy, providing a deeper understanding of the company's financial health and market position.
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