Essential Utilities, Inc.'s (NYSE:WTRG) Chief Accounting Officer, Robert A. Rubin, has recently sold a total of $73,960 worth of company stock, according to the latest SEC filings. The transaction took place on May 1, 2024, with the shares sold at a price of $36.56 each.
Investors tracking insider activity may note that the sale was executed as part of a prearranged trading plan under Rule 10b5-1, which allows company insiders to set up a predetermined plan for trading stock at a time when they are not in possession of material non-public information. This plan helps to facilitate the sale of shares in a compliant manner, providing a defense against accusations of insider trading.
The filing revealed that Rubin disposed of 2,023 shares of Essential Utilities' common stock. Following the sale, Rubin's direct holdings in the company's common stock are now at 13,358.275 shares. Additionally, it's worth noting that Rubin's overall stake includes shares acquired under the company's 401k plan, which were not part of the recent sale but have contributed to his total ownership in the company.
Essential Utilities, Inc., formerly known as Aqua America Inc. , is a company that specializes in water supply and has its headquarters in Bryn Mawr, Pennsylvania. The company's stock is publicly traded and is of interest to investors who follow the water supply sector.
The stock transactions by company executives are closely watched by the market as they can provide insights into insiders' perspectives on the value of the company and its prospects. However, it is important for investors to consider a wide range of factors when making investment decisions and not solely base their actions on insider trades.
For those interested in the detailed transactions of Essential Utilities executives, SEC filings are publicly available and provide a comprehensive record of such insider activities.
InvestingPro Insights
Amid the recent insider trading activity at Essential Utilities, Inc. (NYSE:WTRG), investors may be seeking additional context to better understand the company's financial health and market position. According to InvestingPro data, Essential Utilities has a market capitalization of 10.33 billion USD, reflecting its significant presence in the water supply sector. The company's P/E ratio stands at 17.73, suggesting that it is trading at a valuation that could be considered reasonable in relation to its earnings.
Notably, Essential Utilities has demonstrated a strong commitment to shareholder returns, having raised its dividend for 31 consecutive years, a testament to its financial stability and consistent performance. Moreover, the company's dividend yield is currently at 3.26%, which may appeal to income-focused investors. However, it's also important to note that the company's revenue has seen a decline of 16.23% over the last twelve months as of Q1 2024, which could be a point of consideration for those assessing the company's growth trajectory.
InvestingPro Tips highlight that Essential Utilities is trading at a low P/E ratio relative to near-term earnings growth, potentially indicating an attractive investment opportunity. Additionally, the company has been profitable over the last twelve months, further reinforcing its financial resilience. For investors seeking a deeper dive into Essential Utilities' performance and additional insights, there are more InvestingPro Tips available, which can be accessed through the dedicated page for WTRG at https://www.investing.com/pro/WTRG. To enhance your investing toolkit, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
While insider transactions like those of Chief Accounting Officer Robert A. Rubin can provide valuable clues, they represent just one piece of the puzzle. With a comprehensive view provided by InvestingPro data and tips, investors can make more informed decisions, considering both the actions of company insiders and broader financial metrics.
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