PBF Energy (NYSE:PBF) Trading 3.8% Higher - Here's Why

Key Points

• PBF Energy shares rose 3.8% to about $73 in mid-day trading, despite volume running 46% below its average.
• The company priced $500 million of 0% exchangeable notes due 2032, with proceeds intended to refinance or redeem existing debt and improve liquidity while reducing near-term refinancing pressure.
• PBF reported quarterly EPS of $6.22 versus the $4.15 consensus, while revenue climbed 56.2% year over year to $11.68 billion. Despite favorable earnings momentum, analysts maintain a consensus “Hold” rating with a $59.55 target price, and insiders sold substantial shares during the quarter.

PBF Energy Inc. (NYSE:PBF - Get Free Report)'s stock price shot up 3.8% during mid-day trading on Tuesday . The stock traded as high as $73.05 and last traded at $73.0440. 1,789,113 shares were traded during mid-day trading, a decline of 46% from the average daily volume of 3,303,331 shares. The stock had previously closed at $70.40.

Key PBF Energy News

Here are the key news stories impacting PBF Energy this week:

• Positive Sentiment: PBF Holding and PBF Finance priced $500 million of 0% exchangeable notes due 2032. The zero-coupon structure could reduce cash interest costs, while extending the company’s debt maturity profile and supporting liquidity. PBF Energy Announces Pricing of $500 Million of 0% Exchangeable Notes due 2032
• Positive Sentiment: Proceeds are intended to refinance or redeem existing debt, which may improve PBF Energy’s financial flexibility and reduce near-term refinancing risk. PBF Energy Announces New Exchangeable Notes and Debt Redemption
• Positive Sentiment: Recent Zacks coverage remains favorable, highlighting PBF as a momentum and growth candidate. That view is supported by the company’s latest reported quarterly earnings, which exceeded analyst expectations and showed sharply higher year-over-year revenue. Is PBF Energy a Solid Growth Stock?

Analyst Upgrades and Downgrades

Several equities research analysts have commented on PBF shares. Zacks Research upgraded shares of PBF Energy from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 23rd. Freedom Capital downgraded shares of PBF Energy from a "hold" rating to a "strong sell" rating in a report on Friday, July 31st. Mizuho raised their price objective on shares of PBF Energy from $57.00 to $65.00 and gave the company a "neutral" rating in a research note on Tuesday, August 4th. TD Cowen raised their price objective on shares of PBF Energy from $39.00 to $68.00 and gave the company a "hold" rating in a research note on Tuesday, July 21st. Finally, Morgan Stanley boosted their price objective on shares of PBF Energy from $38.00 to $76.00 and gave the stock an "underweight" rating in a report on Monday. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, eight have assigned a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $59.55.

PBF Energy Stock Performance

The company has a debt-to-equity ratio of 0.27, a current ratio of 1.33 and a quick ratio of 0.67. The company has a market capitalization of $8.92 billion, a PE ratio of 6.66, a P/E/G ratio of 0.08 and a beta of 0.09. The stock has a 50-day simple moving average of $67.35 and a 200 day simple moving average of $51.25.

PBF Energy (NYSE:PBF - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The oil and gas company reported $6.22 earnings per share for the quarter, beating analysts' consensus estimates of $4.15 by $2.07. PBF Energy had a return on equity of 11.27% and a net margin of 3.94%.The business had revenue of $11.68 billion during the quarter, compared to analysts' expectations of $9.61 billion. During the same quarter last year, the business posted ($1.03) earnings per share. The business's revenue for the quarter was up 56.2% on a year-over-year basis. Equities analysts anticipate that PBF Energy Inc. will post 17.89 EPS for the current fiscal year.

PBF Energy Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 14th were issued a dividend of $0.275 per share. This represents a $1.10 annualized dividend and a yield of 1.5%. The ex-dividend date was Friday, August 14th. PBF Energy's dividend payout ratio (DPR) is 9.73%.

Insiders Place Their Bets

In other news, CEO Matthew C. Lucey sold 225,473 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $71.92, for a total transaction of $16,216,018.16. Following the completion of the transaction, the chief executive officer directly owned 495,771 shares of the company's stock, valued at $35,655,850.32. This trade represents a 31.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Thomas J. Nimbley sold 468,139 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $69.54, for a total transaction of $32,554,386.06. Following the transaction, the director directly owned 793,737 shares of the company's stock, valued at approximately $55,196,470.98. This trade represents a 37.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 6,231,944 shares of company stock worth $388,985,033. Insiders own 5.50% of the company's stock.

Institutional Investors Weigh In On PBF Energy

A number of large investors have recently bought and sold shares of the stock. Leonteq Securities AG acquired a new stake in shares of PBF Energy during the first quarter worth $33,000. IFP Advisors Inc grew its position in shares of PBF Energy by 68.7% in the second quarter. IFP Advisors Inc now owns 1,451 shares of the oil and gas company's stock valued at $66,000 after purchasing an additional 591 shares during the period. Eurizon Capital SGR S.p.A. acquired a new position in PBF Energy in the fourth quarter valued at $57,000. Global Retirement Partners LLC increased its stake in PBF Energy by 3,354.7% in the fourth quarter. Global Retirement Partners LLC now owns 2,211 shares of the oil and gas company's stock valued at $60,000 after purchasing an additional 2,147 shares during the last quarter. Finally, Strs Ohio purchased a new position in PBF Energy during the first quarter worth about $143,000. Institutional investors and hedge funds own 96.29% of the company's stock.

About PBF Energy

PBF Energy Inc is an independent petroleum refiner and supplier of transportation fuels, heating oil, petrochemical feedstocks, lubricants, asphalt and other petroleum products. Through its refining operations, the company processes crude oil and other feedstocks into products used by commercial, industrial and consumer customers.

The company operates refineries in several regions of the United States, including the East Coast, Gulf Coast, Midwest and West Coast. Its refinery portfolio includes facilities in Delaware City, Delaware; Paulsboro, New Jersey; Toledo, Ohio; Chalmette, Louisiana; and Torrance, California.

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