John B Hess, Chief Executive Officer at Hess HES, executed a substantial insider sell on November 7, according to an SEC filing.

What Happened: Hess opted to sell 543,679 shares of Hess, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The transaction’s total worth stands at $77,835,860.

Tracking the Friday’s morning session, Hess shares are trading at $142.75, showing a down of 0.0%.

Get to Know Hess Better

Hess is an independent oil and gas producer with key assets in the Bakken Shale, Guyana, the Gulf of Mexico, and Southeast Asia. At the end of 2023, the company reported net proved reserves of 1.4 billion barrels of oil equivalent. Net production averaged 391 thousand barrels of oil equivalent per day in 2023, at a ratio of 74% oil and natural gas liquids and 26% natural gas.

Key Indicators: Hess’s Financial Health

Revenue Growth: Hess’s remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 13.96%. This signifies a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company sets a benchmark with a high gross margin of 78.09%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Hess’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.62.

Debt Management: Hess’s debt-to-equity ratio surpasses industry norms, standing at 0.88. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 16.64 is lower than the industry average, implying a discounted valuation for Hess’s stock.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 3.46, Hess’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): Boasting an EV/EBITDA ratio of 7.36, Hess demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization: Positioned above industry average, the company’s market capitalization underscores its superiority in size, indicative of a strong market presence.

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Exploring the Significance of Insider Trading

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

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

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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 Hess’s Insider Trades.

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