In a recent move, Thomas A. Eichelberger, a director at American States Water Co (NYSE:AWR), has increased his stake in the company through the purchase of additional shares. On May 22, Eichelberger acquired 640 shares at a price of $77.62 per share, amounting to a total investment of $49,676.
This transaction follows a previous acquisition by Eichelberger on May 21, when he purchased 516.3289 shares at $77.47 each, totaling nearly $40,000. Together, these purchases reflect a growing investment by Eichelberger in American States Water, signaling his confidence in the water supply company's future.
The acquisitions have raised Eichelberger's holdings to 7,006.3289 shares, marking a significant increase in his ownership of the company's common shares. Investors often monitor such insider transactions as they can provide insights into the executives' perspectives on the company's valuation and prospects.
American States Water Co, headquartered in San Dimas, California, is a company that operates within the water supply industry. Such insider transactions can be indicative of an executive's belief in the company's potential and are closely watched by market participants for signs of corporate health and strategy.
InvestingPro Insights
As American States Water Co (NYSE:AWR) sees notable insider activity with Director Thomas A. Eichelberger increasing his stake, investors may find additional context through real-time data and insights from InvestingPro. Notably, the company has a track record of maintaining and growing its dividends, having raised them for 31 consecutive years and consistently paying them out for 54 years. This could be a signal of stability and a commitment to shareholder returns, a factor that might have influenced Eichelberger's recent purchases.
With a market capitalization of $2.86 billion and a P/E ratio of 25.08, American States Water is trading at a valuation that reflects a premium relative to near-term earnings growth. The P/E ratio has shown a slight increase to 25.25 over the last twelve months as of Q1 2024. Despite this, the company's liquid assets have been reported to exceed short-term obligations, which may provide some investors with assurance regarding the company’s financial health.
In terms of performance metrics, the company's revenue growth over the last twelve months as of Q1 2024 stands at 4.62%, with a solid gross profit margin of 59.81%. This financial health is complemented by a dividend yield of 2.24% as of the recent ex-dividend date on May 17, 2024.
For those looking to delve deeper, there are additional InvestingPro Tips available that could provide further insights into American States Water's financials and market position. For example, analysts predict the company will be profitable this year, a tip that aligns with Eichelberger's recent investments. Interested investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to these valuable tips. At present, there are 5 more InvestingPro Tips listed for AWR, which can be explored for a more comprehensive analysis.
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