Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Helix Energy Insider Sees Value In His Company

Helix Energy insiderOwen E. Kratz, President and CEO at Helix Energy Solutions Group Inc. (NYSE:HLX) purchased 50,000 shares of common stock late last week, at $23.05 each. However, this is a weighted average price, since the shares were purchased in multiple transactions at prices ranging from $22.95 to $23.12.

The $1,152,500 transaction brought Kratz’ holding in the firm to 5,206,597 shares, valued at approximately $123,917,008. The CEO also has indirect holdings of 1,000,000 shares, since he is the general partner of Joss Investments Limited Partnership, the entity that controls the shares.

Helix Energy Solutions Group Inc. (NYSE:HLX)

Helix Energy stock is currently trading at 2.8 times its sales, far above the industry standard of 1.8, and thus entailing a 55.5% price premium relative to its peers’ average. The company has been delivering poor results recently, with a grim forward outlook due to declining EBITDA and negative return on capital.

Nevertheless, the announcement of third quarter results gave shareholders a reason to regain confidence. Mr. Kratz stated, “third quarter results increased due to top line growth and profitability in both the Well Intervention and Robotics businesses.” He went on to explain, “Last month’s announcement of the Q7000 newbuild is indicative of our confidence in the growing market demand for well intervention services.”

The latest insider purchase is Kratz’s first transaction since 2011. Many expect the firm to regain its foothold following improved third quarter results, and displayed of confidence shown by the CEO’s million dollar sign of good will. Either way stock price experienced a boost in value since Kratz’s purchase, increasing by 3.7% from Thursday’s initial transaction at $22.95 per share to Friday’s current value of $23.80 per share. This increment in shareholder’s value represents a huge reversal of the downwards trend the stock has been experiencing over the past month, and is bound to inspire trust in investors.

Disclosure: Pablo Erbar holds no position in any stocks mentioned

Recommended Reading:

The Coach CEO is Buying

Insider Buying at Tompkins Doesn’t Happen Often, So Pay Attention to This Move

Ameris Bancorp Insiders Seem to Be Betting on This Pending Acquisition