Capital Management Firm Acquires $1.7 Million in PBF Energy Shares

Investors in PBF Energy Inc. might be interested to learn that Control Empresarial de Capitales S.A. de C.V., a noteworthy shareholder, has recently increased its stake in the company. Control Empresarial acquired 55,000 shares of PBF Energy at a weighted average price of $30.8477, totaling approximately $1.7 million.

This transaction occurred on September 30, 2024, as revealed in the latest filings. The shares were purchased in several trades at prices ranging from $30.795 to $30.90. With this acquisition, Control Empresarial now holds 23,462,398 shares of PBF Energy’s Class A Common Stock, representing a substantial interest in the company.

Control Empresarial de Capitales is significant due to its connection with the Slim Family, a renowned group of investors with extensive holdings across various sectors. The Slim Family, as beneficiaries of a Mexican trust that owns Control Empresarial, indirectly possesses approximately 20% of PBF Energy’s outstanding Class A Common Shares, as noted in the company’s recent SEC filing.

Market observers closely watch such transactions, as they may indicate major shareholders’ confidence in the company’s future. Control Empresarial’s recent acquisition could be interpreted as a positive signal for PBF Energy’s performance ahead.

As investors and analysts keep a close eye on trading behaviors of key stakeholders like Control Empresarial, these insights may lend valuable information regarding the company’s valuation and overall market sentiment.

In other developments, PBF Energy faced challenges in the second quarter, primarily stemming from adverse market conditions and extended maintenance activities, which resulted in lower earnings. Nonetheless, the company has maintained a strong cash position, aiming to retain it between $1 billion and $1.5 billion. Amid these challenges, financial institutions have adjusted their ratings for PBF Energy. JPMorgan downgraded its recommendation from Overweight to Neutral, lowering the price target to $40.00, while Piper Sandler moved from ‘Neutral’ to ‘Underweight’, with a price target set at $25.00. These adjustments reflect concerns regarding PBF Energy’s future financial outlook and market standing. Looking forward, the company plans to double its production from the Trans Mountain Expansion pipeline by year-end and remains optimistic about its renewable diesel business in the medium to long term. These strategic decisions highlight PBF Energy’s focus on addressing regional supply shortages and increasing production amid a challenging market landscape.

Additionally, the recent purchase by Control Empresarial de Capitales aligns with insights suggesting that PBF Energy’s management has been actively repurchasing shares, a move that, alongside the increase in stakeholder stake, may indicate confidence in the company’s potential.

Despite these positive signals, PBF Energy’s stock has experienced a steep decline of 46.65% over the past six months, placing its value near a 52-week low. This situation could present a potential value opportunity for investors who align with the Slim Family’s apparent optimism.

The company’s financial health appears mixed. PBF Energy enjoys a high shareholder yield and operates with moderate levels of debt, but its gross profit margins are weak. Recent data indicates 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.

Those interested in gaining a deeper understanding of PBF Energy’s prospects can find additional insights and analyses available for further exploration.

This article was generated with the support of AI and reviewed by an editor.