Control Empresarial de Capitales SA de CV, a majority shareholder in PBF Energy Inc. (NYSE:), has increased its ownership interest in the company by purchasing a significant number of Class A common shares. The transaction, disclosed in a recent SEC filing, included the acquisition of 389,000 shares over two days, October 28 and 29, 2024.
The acquisition was made at a weighted average price of $29.5813 to $31.584 per share, for a total investment of approximately $11.7 million. Following these transactions, Control Empresarial’s total holdings of PBF Energy shares increased to 25,340,498 shares.
This move confirms the continued interest and confidence of Control Empresarial, a company associated with the Slim family, in PBF Energy, a major player in the oil refining industry.
In other recent news, PBF Energy has been the subject of multiple analyst reviews, with stock rating downgrades and price target revisions being the common trend. BofA Securities lowered PBF Energy’s price target to $25 and rated it underperform, citing the company’s high dependence on refining and logistics. Citi also revised its price target on PBF Energy to $37, expecting a third-quarter loss of $1.33 per share. BMO Capital Markets, JPMorgan and Piper Sandler made similar adjustments, all reflecting concerns about the companies’ future financial performance.
PBF Energy’s revenue and earnings are affected by a variety of factors, including refining margin volatility and refinery performance, most of which are located in short duration markets. Despite these challenges, PBF Energy has made significant progress in reducing debt and strengthening its balance sheet. The company also plans to double production from its 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 highlight PBF Energy’s strategic focus on addressing regional supply shortages and increasing production amid challenging market conditions. But despite the company’s efforts, analysts such as JPMorgan have suggested that investors may prefer large refiners in the current market environment. This analysis is based on the company’s recent financial performance and market trends, rather than speculation or subjective evaluations.
Investment Pro Insights
Control Empresarial de Capitales’ recent stock purchases are consistent with some key insights from InvestingPro. The InvestingPro Tip highlights that PBF Energy’s management is actively buying back shares, pointing to a broader trend of increasing insider confidence in the company’s value. This is especially noteworthy given that the stock is currently trading near its 52-week low and has experienced significant price declines over the past three and a half months.
Despite these challenges, PBF Energy maintains a strong financial position. The company’s P/E ratio of 4.5x suggests that it may be undervalued relative to its earnings. Additionally, PBF Energy boasts a high shareholder return, which could be attractive to investors like Control Empresarial de Capital, which has increased its stake in the company.
It is worth noting that PBF Energy’s revenue for the trailing twelve months as of Q2 2024 was $37.25 Billion, which is a decrease of 11.43% compared to the previous quarter. The company’s dividend yield of 3.44% may also have been a factor in Control Empresarial’s decision to increase its holdings.
For investors looking for a more comprehensive analysis, InvestingPro provides 14 additional tips on PBF Energy to help you better understand the company’s financial health and market position.
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