Control empresarial de capitales buys $26.4 million in PBF Energy stock By Investing.com
In a recent transaction, Control Empresarial de Capitales SA de CV increased its stake in PBF Energy Inc. (NYSE:), a petroleum refining company. The transaction involved the purchase of PBF Energy shares for a total of approximately $26.4 million. The shares were acquired in two separate bids, at prices ranging from $31.2522 to $31.2899 per share.
On September 11, Control Empresarial de Capitales bought 670,000 shares at an average price of $31.2899, and the next day, they received an additional 175,000 shares at an average price of $31.2522. The transaction was part of a broader investment strategy for the company, which now owns a majority of PBF Energy's common stock.
The purchase of Control Empresarial de Capitales is notable as the company is known to own 10 percent of PBF Energy, indicating a significant level of investment in the oil refinery. The transaction was disclosed in a regulatory filing with the Securities and Exchange Commission, which provides transparency on the trading activities of major shareholders and company insiders.
Investors often monitor such trades closely as they can provide insight into the confidence and expectations key stakeholders have for the company's future performance. Control Empresarial de Capitales' growing investment in PBF Energy may be seen as a positive sign by some investors and market analysts.
Control Empresarial de Capitales, formerly known as Inversora Carso, SA de CV, is an investment vehicle with a diversified portfolio of interests. The company has made several strategic investments over the years, and its latest move with PBF Energy represents another important position in the energy sector.
As the market considers the implications of this transaction, PBF Energy's stock performance will continue to benefit investors following the company's progress and the actions of key shareholders.
In other recent news, PBF Energy had a mixed second quarter in 2024, reporting lower earnings due to challenging market conditions and maintenance delays. Despite these challenges, the company maintained a strong cash balance between $1 billion and $1.5 billion and continued its commitment to shareholder returns through share buybacks and dividends. Despite weak Asian markets impacting the West Coast, PBF Energy is optimistic about future developments and plans to double its production from the Trans Mountain Expansion pipeline by the end of the year.
PBF Energy is undergoing a major transformation in its renewable diesel business and sees RINs as an associated benefit. The company's East Coast assets are well-positioned to deal with inventory shortages, while West Coast assets sit in the top quartile. The company faced a $100 million loss in revenue opportunity due to increased turnover in Del City and Toledo, and an additional $50 million loss due to weaker market conditions.
The company is building on the global refining market and continues to prioritize investing in long-term shareholder value. PBF Energy expects demand growth in the second half of the year and is optimistic about the medium- to long-term outlook for its renewable diesel business. Despite the challenges faced in the second quarter, PBF Energy's positioning and financial management provide grounds for cautious optimism.
InvestingPro Insights
Control Empresarial de Capitales' latest investment in PBF Energy Inc. (NYSE:PBF) coincides with some interesting metrics and data provided by InvestingPro. Notably, PBF Energy has been engaging in aggressive share buying, as indicated by one of InvestingPro's tips, which could influence the investment firm's decision to increase its stake. Additionally, PBF Energy has a high shareholder return, which may have also attracted interest from an investment vehicle.
From a valuation perspective, PBF Energy currently trades at a low multiple of earnings, with a Price/Earnings (P/E) ratio of 5.04 and an adjusted P/E ratio for the trailing twelve months from Q2 2024 of 4.64. This positions the company as less valuable in the eyes of other investors, providing an attractive entry point for Control Empresarial de Capitales.
Despite a challenging environment with an 11.43% decline in revenue over the past twelve months from Q2 2024, PBF Energy's management has shown the ability to cover interest payments with cash flow, and its liquid assets exceed short-term obligations, as highlighted by more InvestingPro tips. These factors can be seen as signs of financial stability and prudent financial management.
For those interested in more analysis and tips, InvestingPro provides additional information, including 7 more PBF Energy tips, which can be found at These tips provide in-depth analysis and may be useful for investors considering PBF Energy as part of their investment portfolio.
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