Revealing a significant insider sell on October 30, BRUCE BERKOWITZ, 10% Owner at St. Joe JOE, as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that BERKOWITZ executed a sale of 92,800 shares of St. Joe with a total value of $4,931,010.

St. Joe shares are trading down 0.13% at $52.94 at the time of this writing on Thursday morning.

Delving into St. Joe’s Background

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 features a private membership club (the Watersound 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.

Understanding the Numbers: St. Joe’s Finances

Revenue Challenges: St. Joe’s revenue growth over 3 months faced difficulties. As of 30 September, 2024, the company experienced a decline of approximately -2.35%. This indicates a decrease in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Real Estate sector.

Holistic Profitability Examination:

• Gross Margin: The company faces challenges with a low gross margin of 38.03%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): St. Joe’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.29.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.88, caution is advised due to increased financial risk.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: St. Joe’s current Price to Earnings (P/E) ratio of 44.51 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 7.89, 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): St. Joe’s EV/EBITDA ratio, surpassing industry averages at 21.12, positions it with an above-average valuation in the market.

Market Capitalization: Exceeding industry standards, the company’s market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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Illuminating the Importance of Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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.

Important 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 St. Joe’s Insider Trades.

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