Making a noteworthy insider sell on November 12, BRUCE BERKOWITZ, 10% Owner at St. Joe JOE, is reported in the latest SEC filing.

What Happened: BERKOWITZ’s decision to sell 45,400 shares of St. Joe was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $2,418,458.

St. Joe‘s shares are actively trading at $51.03, experiencing a down of 0.0% during Wednesday’s morning session.

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.

Financial Insights: St. Joe

Revenue Growth: St. Joe’s revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -2.35%. This indicates a decrease in the company’s 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.

Interpreting Earnings Metrics:

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

• Earnings per Share (EPS): St. Joe’s EPS outshines the industry average, indicating a strong 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.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: St. Joe’s stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 43.62.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 7.73 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 20.76 reflects market recognition of St. Joe’s value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: The company’s market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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The Impact of Insider Transactions on Investments

Considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

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.

A Closer Look at Important Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes 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.