Control Empresarial de Capitales Acquires $16.4 Million in PBF Energy Shares

Investors are paying close attention as Control Empresarial de Capitales S.A. de C.V., a key shareholder in PBF Energy Inc., has reported the acquisition of additional shares in the petroleum refining company. The transactions, which occurred on September 20 and September 23, 2024, involved the purchase of a total of 515,000 shares at an average price between $31.7844 and $31.8694, totaling approximately $16.4 million.

These recent acquisitions have raised Control Empresarial de Capitales’ ownership in PBF Energy, solidifying its position as a major stakeholder. Following these transactions, the company’s holdings now comprise a total of 23,217,398 Class A Common Shares, which represents a significant portion of PBF Energy’s issued and outstanding shares and underscores Control Empresarial de Capitales’ considerable influence within the company.

The details of the transactions were made public in a regulatory filing, which noted that the reporting individuals would provide detailed information about the shares sold at each distinct price within the stated range upon request. Such transparency is a standard requirement and sheds light on the specifics of the trades.

The filing also disclosed that the shares were purchased directly, with footnotes indicating that additional parties, collectively referred to as the Slim Family, might be viewed as indirectly owning the shares held by Control Empresarial de Capitales.

Investors and analysts typically examine such filings for insights into insider sentiment and potential strategic maneuvers by major shareholders. The increase in stake by Control Empresarial de Capitales in PBF Energy could be seen as an indication of confidence in the company’s future or as part of a broader investment strategy.

PBF Energy Inc., based in Parsippany, New Jersey, operates within the petroleum refining sector and has established itself as a significant player in the industry.

In related news, PBF Energy encountered difficulties during the second quarter of 2024, reporting lower earnings due to reduced RIN adjusted crack spreads, unfavorable market conditions, and extended maintenance. Nevertheless, the company sustained a healthy cash balance between $1 billion and $1.5 billion. Piper Sandler downgraded PBF Energy’s stock rating from ‘Neutral’ to ‘Underweight’ due to concerns over refining leverage and cash flow, adjusting its price target for the shares from $47.00 to $25.00.

Piper Sandler predicts that the company could face a cash flow deficit of about $446 million in 2025, which may hinder its ability to execute substantial share buybacks. Despite missing out on $100 million in profit opportunities due to prolonged maintenance at Del City and Toledo, as well as a $50 million loss from unfavorable market conditions, PBF Energy remains dedicated to long-term value. The company holds a positive outlook for the global refining market and aims to double its production from the Trans Mountain Expansion pipeline by the year’s end.

For investors monitoring PBF Energy, the latest metrics may provide valuable insights as they evaluate the impact of Control Empresarial de Capitales’ increased stake. PBF’s market capitalization is currently at $3.69 billion, and it presents an attractive price-to-earnings (P/E) ratio of 4.9, which lowers to 4.43 when adjusted for the last twelve months as of Q2 2024. This suggests that the company is trading at a relatively lower multiple of its earnings compared to many peers in the industry, potentially indicating undervaluation.

A notable insight highlights that PBF’s management has been actively repurchasing shares, which often signals confidence in the company’s potential and future performance. Additionally, PBF Energy exhibits a high shareholder yield, appealing to income-focused investors.

Regarding financial performance, PBF Energy’s revenue for the last twelve months ending Q2 2024 was $37.25 billion, despite an 11.43% decline during that period. This decline should be a consideration for investors, especially with analysts downgrading their earnings expectations for the near future.

This article was created with the assistance of AI and reviewed by an editor.