Control Empresarial de Capitales S.A. de C.V., a significant shareholder in PBF Energy Inc. (NYSE:PBF), has made notable acquisitions of the company's Class A Common Shares, according to a recent filing. The transactions, which took place on November 25 and 26, involved the purchase of a total of 277,000 shares.
The shares were acquired at a weighted average price ranging from $31.4499 to $31.6953, with a total transaction value of approximately $8.7 million. Following these purchases, Control Empresarial now holds 26,959,498 shares of PBF Energy, representing about 23.4% of the company's outstanding Class A Common Shares.
These transactions highlight Control Empresarial's continued investment in PBF Energy, a company operating in the petroleum refining sector. The acquisitions were executed under the direct ownership of Control Empresarial, further solidifying its position as a major stakeholder in the company.
In other recent news, PBF Energy experienced a challenging third quarter in 2024, reporting an adjusted net loss of $1.50 per share and an adjusted EBITDA loss of $60.1 million. This was mainly due to lower-than-expected refining margins, as stated by Mizuho (NYSE:MFG) Securities, which subsequently reduced the company's stock target to $33 from $36. Despite the tough quarter, PBF Energy demonstrated confidence in its future prospects by increasing its dividend by 10% and returning $104 million to shareholders.
The company's guidance for the fourth quarter indicates a decrease in volume, attributed to the scheduled turnaround at the Chalmette refinery and adjustments in response to current economic conditions. PBF Energy is also exploring asset monetization opportunities, including excess real estate in Delaware, and is targeting $200 million in run rate cash savings by the end of 2025.
Mizuho Securities maintains a neutral rating on PBF Energy, reflecting cautious optimism about the refining industry's near to medium-term prospects. The firm's analysis suggests that the market environment for refining could remain challenging until the existing supply-demand imbalance is addressed. These recent developments underscore the potential headwinds faced by the refining sector in the coming periods.
InvestingPro Insights
The recent share acquisitions by Control Empresarial de Capitales S.A. de C.V. align with some interesting trends revealed by InvestingPro data for PBF Energy Inc. (NYSE:PBF). Despite the significant insider purchase, PBF's financial metrics paint a complex picture of the company's current position.
According to InvestingPro Tips, management has been aggressively buying back shares, which complements the insider buying activity reported in the article. This could signal confidence in the company's future prospects. Additionally, PBF Energy boasts a high shareholder yield and has raised its dividend for three consecutive years, with a current dividend yield of 3.48%.
However, the company faces some challenges. PBF's revenue for the last twelve months as of Q3 2024 stood at $34.9 billion, with a concerning revenue growth decline of -12.81% over the same period. The company's gross profit margin is notably low at 1.75%, which InvestingPro identifies as a weakness.
Interestingly, while the stock is trading at a low revenue valuation multiple, it's simultaneously trading at a high EBITDA valuation multiple. This discrepancy could suggest that investors are pricing in future improvements in operational efficiency.
For investors considering PBF Energy, it's worth noting that InvestingPro lists 11 additional tips that could provide further insight into the company's financial health and market position. These tips, available with an InvestingPro subscription, could be particularly valuable given the mixed signals from the current financial data and the significant insider buying activity.
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