Control Empresarial de Capitales S.A. de C.V., a major shareholder of PBF Energy Inc. (NYSE:PBF), has acquired 85,000 shares of the company's Class A common stock. The shares were purchased at a weighted average price of $28.3696, with the total transaction amounting to approximately $2.41 million. This acquisition increases Control Empresarial's stake in PBF Energy to 26,197,498 shares, which represents about 22.8% of the company's outstanding Class A shares. The transactions were completed on November 5, 2024, as reported in a recent SEC filing.
In other recent news, PBF Energy has faced a challenging third quarter, reporting an adjusted net loss of $1.50 per share and an adjusted EBITDA loss of $60.1 million. These results were primarily due to weaker refining margins. Despite these hurdles, the company managed to operate its refineries effectively without significant downtime and returned $104 million to shareholders. In addition, PBF Energy announced a 10% increase in its quarterly dividend to $0.275 per share, reflecting confidence in its future prospects.
Mizuho (NYSE:MFG) Securities has adjusted its stance on PBF Energy, reducing the company's price target from $36 to $33, while retaining a Neutral rating. This adjustment follows PBF Energy's recent earnings results and reflects a cautious perspective on the refining industry's near to medium-term prospects. Mizuho's analysis underscores potential headwinds faced by the refining sector in the upcoming periods.
Looking ahead, PBF Energy is targeting $200 million in run rate cash savings by the end of 2025 and anticipates capital expenditures for 2025 to be between $750 million to $800 million. The company is also exploring asset monetization opportunities, including excess real estate in Delaware. Despite a $29 million loss from its equity investment in St. Bernard Renewables, PBF Energy remains strategically positioned for growth, expressing optimism for improved capture rates in the future.
InvestingPro Insights
The recent share acquisition by Control Empresarial de Capitales S.A. de C.V. aligns with PBF Energy's current market dynamics and financial position. According to InvestingPro data, PBF Energy's market capitalization stands at $3.54 billion, with the stock trading at a price-to-book ratio of 0.6, suggesting a potentially undervalued position.
InvestingPro Tips highlight that management has been aggressively buying back shares, which complements the major shareholder's increased stake. This could be seen as a vote of 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 3.57%.
However, investors should note that the company faces some challenges. PBF Energy's revenue growth has declined by 12.81% over the last twelve months, and its gross profit margin is relatively weak at 1.75%. The company is also not profitable over the last twelve months, with a negative operating income of $290.1 million.
Despite these challenges, PBF Energy has shown a significant return over the last week, with a 1-week price total return of 8.13%. This recent uptick could be related to the insider buying activity and might indicate positive sentiment among key stakeholders.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for PBF Energy, providing a deeper understanding of the company's financial health and market position.
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