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Control Empresarial de Capitales S.A. de C.V., a significant stakeholder in PBF Energy Inc. (NYSE:PBF), has expanded its holdings in the company. According to a recent filing, Control Empresarial purchased 155,000 Class A Common Shares of PBF Energy. The shares were acquired at an average price of $20.205, with the transaction valued at approximately $3.1 million. The purchase comes as PBF trades near its 52-week low of $19.51, having declined over 55% in the past year. Based on InvestingPro analysis, the stock appears undervalued at current levels.
Following this acquisition, Control Empresarial now holds 30,249,998 shares of PBF Energy, representing a substantial 26.2% of the company’s outstanding Class A Common Shares. This move underscores the continued interest and investment by Control Empresarial and the Slim Family, who are indirect beneficial owners of the shares through a Mexican trust. The acquisition was executed in multiple transactions, with prices ranging from $19.95 to $20.50 per share. With a market capitalization of $2.37 billion and trading at just 0.43 times book value, this insider buying activity could be significant. Get deeper insights into insider trading patterns and 12+ additional key metrics with a InvestingPro subscription.
In other recent news, PBF Energy reported disappointing fourth-quarter 2024 results, with earnings per share (EPS) of -$2.82, missing the forecast of -$1.97, and revenue of $7.35 billion, which fell short of the expected $7.76 billion. The company faced operational challenges, including a complete shutdown of its Martinez refinery due to a fire, which significantly impacted production capacity. Analysts from TD Cowen responded by cutting PBF Energy’s stock price target to $19 from $20, maintaining a Sell rating due to concerns about the financial impact of the Martinez shutdown, which could pose a $100 million financial headwind if it remains closed throughout the first quarter.
JPMorgan also revised its price target for PBF Energy, lowering it to $31 from $35, while maintaining a Neutral rating. The decision was influenced by the company’s increased net debt and the ongoing issues at the Martinez refinery. PBF Energy’s focus remains on strengthening its balance sheet, with a $200 million business improvement plan aimed at cost savings and operational efficiency.
The Martinez refinery’s shutdown, which accounts for 15% of the company’s total capacity, adds uncertainty to PBF Energy’s financial outlook, with potential incremental costs of $20 million for each additional month of closure. Despite these challenges, PBF Energy is committed to maintaining a strong balance sheet, prioritizing financial stability, and achieving $200 million in run-rate cost savings by the end of 2025 through its Refining Business Improvement Program.
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