Control Empresarial de Capitales S.A. de C.V., a significant shareholder in PBF Energy Inc. (NYSE:PBF), has expanded its stake in the company with a recent purchase of 80,000 Class A Common Shares. The shares were acquired over two days, November 11 and 12, at an average price range of $29.95 to $30.10, amounting to a total transaction value of approximately $2.4 million.
Following these transactions, Control Empresarial now holds 26,277,498 shares of PBF Energy, representing about 22.8% of the company's outstanding Class A Common Shares. This move underscores the continued interest and investment by the Slim Family, who are beneficiaries of a Mexican trust that owns Control Empresarial.
In other recent news, PBF Energy experienced a challenging third quarter in 2024, reporting an adjusted net loss of $1.50 per share and an adjusted EBITDA loss of $60.1 million. Despite these figures, the company effectively operated its refineries without significant downtime and returned $104 million to shareholders. This action signals confidence in its long-term prospects, underpinned by expectations of relief from refinery closures and easing geopolitical tensions by 2025.
Mizuho (NYSE:MFG) Securities recently adjusted its stance on PBF Energy, reducing the company's price target from $36 to $33, while maintaining a Neutral rating. This revision follows the company's third-quarter earnings, which fell short of market expectations due to lower-than-anticipated refining margins. The firm's analysis reflects a cautious perspective on the refining industry's near to medium-term prospects.
PBF Energy also announced a 10% increase in its quarterly dividend to $0.275 per share and is targeting $200 million in run rate cash savings by the end of 2025. The company is exploring asset monetization opportunities, including excess real estate in Delaware, and anticipates capital expenditures for 2025 to be between $750 million to $800 million. Despite a $29 million loss from its equity investment in St. Bernard Renewables, PBF Energy remains strategically positioned for growth.
InvestingPro Insights
The recent share purchase by Control Empresarial de Capitales aligns with PBF Energy's ongoing strategy of shareholder value creation. According to InvestingPro Tips, management has been aggressively buying back shares, indicating a strong belief in the company's future prospects. This insider buying activity, coupled with the company's high shareholder yield, suggests a commitment to returning value to shareholders.
Despite these positive signals, PBF Energy faces some challenges. The company's revenue growth has declined by 12.81% over the last twelve months, and its gross profit margin stands at a low 1.75%. These figures reflect the volatile nature of the energy sector and the specific headwinds PBF Energy may be encountering.
Investors should note that PBF Energy's dividend yield is currently at 3.69%, with the company having raised its dividend for three consecutive years. This consistent dividend growth could be attractive for income-focused investors, especially considering the company's current price-to-book ratio of 0.6, which suggests the stock may be undervalued relative to its assets.
For those interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for PBF Energy, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.