Investors following PBF Energy Inc. (NYSE:PBF) might be interested to learn that Control Empresarial de Capitales S.A. de C.V., a significant shareholder, has recently increased its stake in the company. Control Empresarial de Capitales purchased 55,000 shares of PBF Energy at a weighted average price of $30.8477, totaling approximately $1.7 million.
This purchase took place on September 30, 2024, as indicated in the latest filings. The shares were acquired in multiple transactions at prices ranging from $30.795 to $30.90. Following this transaction, Control Empresarial de Capitales now owns 23,462,398 shares of PBF Energy's Class A Common Stock, which represents a substantial holding in the company.
The involvement of Control Empresarial de Capitales in PBF Energy is significant, as they are connected to the Slim Family, a prominent group of investors known for their extensive holdings in various sectors. The Slim Family, as beneficiaries of a Mexican trust that owns Control Empresarial de Capitales, indirectly share the beneficial ownership of the acquired shares. This connection places them as indirect owners of approximately 20% of PBF Energy's issued and outstanding Class A Common Shares, as previously reported in the company's Form 10-Q filing with the SEC on August 1, 2024.
Transactions of this nature are closely watched by the market as they may indicate the confidence of significant shareholders in the company's prospects. The recent acquisition by Control Empresarial de Capitales could be seen as a positive sign for PBF Energy and its future performance.
Investors and analysts will likely continue to monitor the trading activity of major shareholders like Control Empresarial de Capitales for insights into the company's valuation and the sentiments of influential investors towards the stock.
In other recent news, PBF Energy faced a challenging second quarter due to unfavorable market conditions and extended maintenance activities, leading to lower earnings. Despite these setbacks, the company maintained a robust cash position, aiming to keep it between $1 billion and $1.5 billion. Amid these developments, financial firms JPMorgan (NYSE:JPM) and Piper Sandler downgraded PBF Energy's stock rating. JPMorgan shifted its stance from Overweight to Neutral, reducing the price target to $40.00, while Piper Sandler downgraded the stock from 'Neutral' to 'Underweight', setting a price target of $25.00. These changes reflect concerns over PBF Energy's future financial performance and market position. Looking ahead, PBF Energy 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 underscore PBF Energy's strategic focus on addressing regional supply deficits and increasing production amidst a challenging market environment.
InvestingPro Insights
The recent purchase by Control Empresarial de Capitales aligns with some intriguing insights from InvestingPro. According to InvestingPro Tips, PBF Energy's management has been aggressively buying back shares, which, coupled with this significant shareholder increasing its stake, could signal confidence in the company's value proposition.
Despite the positive insider activity, PBF Energy's stock has taken a significant hit over the last six months, with InvestingPro data showing a 46.65% price decline in that period. This downturn has led to the stock trading near its 52-week low, potentially presenting a value opportunity for investors who share the Slim Family's apparent optimism.
The company's financial health appears mixed. While PBF Energy boasts a high shareholder yield and operates with a moderate level of debt, it suffers from weak gross profit margins. The latest data shows a gross profit margin of 5.66% for the last twelve months as of Q2 2024. However, the company remains profitable, with a P/E ratio of 4.81, suggesting it may be undervalued relative to its earnings.
For investors seeking a deeper understanding of PBF Energy's prospects, InvestingPro offers 13 additional tips beyond those mentioned here, providing a comprehensive analysis of the company's financial position and market performance.
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