HOUSTON – In a recent move, Jonathan P. Carroll, CEO and President of Blue Dolphin Energy Co (NASDAQ:BDCO), purchased shares of the company's common stock, signaling a vote of confidence in the firm. The transactions, which took place over two consecutive days, involved the acquisition of 200 shares at prices ranging from $3.617 to $3.975, amounting to a total expenditure of $759.
On June 5, 2024, Carroll executed his first transaction by acquiring 100 shares at $3.617 each. The following day, he continued with an identical number of shares, this time at a slightly higher price of $3.975 per share. These purchases have increased his direct ownership in Blue Dolphin Energy to 4,002,279 shares. Additionally, Carroll indirectly owns a substantial amount of 8,426,456 shares through his interest in Lazarus Energy Holdings, LLC.
Investors often monitor insider transactions such as these for insights into executive sentiment toward their own company's stock. While the CEO's recent purchases are relatively modest in scale, they contribute to a broader understanding of how insiders may view the company's current valuation and future prospects.
Blue Dolphin Energy, headquartered in Houston, Texas, operates within the crude petroleum and natural gas industry. The company's stock trades on the NASDAQ exchange under the ticker symbol BDCO. The recent insider transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, as required by federal securities laws.
InvestingPro Insights
Following the CEO's recent stock purchases, Blue Dolphin Energy Co (NASDAQ:BDCO) has shown interesting activity and data points that may be of interest to investors. According to InvestingPro, the stock's Relative Strength Index (RSI) suggests it is currently in oversold territory. This could indicate that the stock might be undervalued or due for a rebound, aligning with the CEO's apparent confidence in acquiring more shares.
Despite the CEO's optimism, the company's stock has indeed taken a significant hit over the last week, with a price total return of -12.4%. This decline is part of a broader trend, as the stock has fared poorly over the last month, showing a price total return of -40.71%. These metrics may have presented a buying opportunity for the CEO, as the market cap currently stands at a modest $65.28 million USD, and the stock is trading at a low revenue valuation multiple with a P/E ratio (adjusted for the last twelve months as of Q1 2024) of just 2.94.
The financial health of Blue Dolphin Energy can further be assessed by its revenue and profit margins. The company has generated revenue of $370.41 million USD over the last twelve months as of Q1 2024, although it has experienced a decline in revenue growth by -24.94% during the same period. Additionally, the gross profit margin stands at 9.72%, which InvestingPro highlights as a weak point for the company.
For investors looking for more in-depth analysis and additional insights, InvestingPro offers a total of 8 tips for BDCO, which can guide investment decisions. To explore these tips and benefit from the full range of features, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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