Control empresarial de capitales buys $26.4 million in PBF Energy stock By Investing.com

In a recent transaction, Control Empresarial de Capitales S.A. de C.V. has increased its stake in PBF Energy Inc. (NYSE:), a petroleum refining company. The transaction involved the purchase of PBF Energy shares totaling approximately $26.4 million. The shares were acquired across two separate transactions, with prices ranging from $31.2522 to $31.2899 per share.

On September 11, Control Empresarial de Capitales bought 670,000 shares at a weighted average price of $31.2899, and on the following day, they acquired an additional 175,000 shares at a weighted average price of $31.2522. These transactions were part of a broader investment strategy by the company, which now holds a significant portion of PBF Energy’s common stock.

The purchases by Control Empresarial de Capitales are noteworthy as the company is recognized as a ten percent owner of PBF Energy, indicating a substantial level of investment in the petroleum refining firm. The transactions were disclosed in a regulatory filing with the Securities and Exchange Commission, which provides transparency into the trading activities of major shareholders and company insiders.

Investors often monitor such transactions closely as they can provide insights into the confidence and expectations that significant stakeholders have in the company’s future performance. Control Empresarial de Capitales’ increased investment in PBF Energy may be seen as a positive sign by other investors and market analysts.

Control Empresarial de Capitales, previously known as Inversora Carso, S.A. de C.V., is an investment vehicle with a diverse portfolio of interests. The company has made several strategic investments over the years, and its latest move with PBF Energy represents another significant position in the energy sector.

As the market processes the implications of these transactions, PBF Energy’s stock performance will continue to be a point of interest for investors following the company’s progress and the actions of its significant 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 robust cash balance between $1 billion and $1.5 billion and continued its commitment to shareholder returns through repurchases and dividends. Despite weak Asian markets impacting the West Coast, PBF Energy is optimistic about future improvements and plans to double its production from the Trans Mountain Expansion pipeline by the end of the year.

PBF Energy is undergoing a catalyst change in its renewable diesel business and sees RINs as an ancillary benefit. The company’s East Coast assets are well-positioned to address supply deficits, while the West Coast assets remain in the top quartile. The company faced a $100 million loss in profit opportunity due to extended turnaround at Del City and Toledo, with an additional $50 million loss attributed to weakened market conditions.

The company is constructive on the global refining market and continues to prioritize investments for 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 strategic positioning and financial management provide a basis for cautious optimism.

InvestingPro Insights

Control Empresarial de Capitales’ recent investment in PBF Energy Inc. (NYSE:PBF) coincides with some intriguing metrics and insights provided by InvestingPro. Notably, PBF Energy has been engaging in aggressive share buybacks, as indicated by one of the InvestingPro Tips, which could be a factor in the investment firm’s decision to increase its stake. Additionally, PBF Energy has a high shareholder yield, which may have further attracted the investment vehicle’s interest.

From a valuation perspective, PBF Energy is currently trading at a low revenue valuation multiple, with a Price/Earnings (P/E) ratio of 5.04 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at 4.64. This positions the company as potentially undervalued in the eyes of some investors, providing an attractive entry point for Control Empresarial de Capitales.

Despite a challenging environment with a revenue decline of 11.43% in the last twelve months as of Q2 2024, PBF Energy’s management has demonstrated a capacity to cover interest payments with its cash flows, and its liquid assets exceed short-term obligations, as highlighted by additional InvestingPro Tips. These factors could be seen as signs of financial resilience and prudent fiscal management.

For those interested in further analysis and tips, InvestingPro offers additional insights, including 7 more tips for PBF Energy, which can be found at https://www.investing.com/pro/PBF. These tips provide deeper analysis and could be valuable for investors considering PBF Energy as part of their investment portfolio.

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