In a recent transaction on August 26, Christopher E. Ware, the Senior Vice President, General Counsel, and Corporate Secretary of Itron, Inc. (NASDAQ:ITRI), sold 92 shares of the company's common stock. The sale was executed at a price of $102.1499 per share, resulting in a total value of approximately $9,397.
The transaction was part of an automatic sale to cover tax withholding obligations related to the vesting of a restricted stock unit award. Following the sale, Ware's direct ownership in the company stands at 15,189 shares.
Itron, Inc., headquartered in Liberty Lake, Washington, specializes in instruments for measuring and testing electricity and electronic signals. The company has a history of innovation and provides solutions in the industrial applications and services sector.
Investors often monitor the trading activity of company insiders for insights into the performance and direction of the company. The sale of shares by a high-ranking executive like Ware can be of particular interest to current and potential shareholders.
The details of the transaction were disclosed in a Form 4 filing with the Securities and Exchange Commission (SEC) on August 28.
In other recent news, Itron, Inc. reported a robust second quarter, noting a 13% increase in revenue compared to the previous year. This growth was driven by record revenues in the Network (LON:NETW) Solutions and Outcomes segments. The company's backlog remains substantial at $4.1 billion, with bookings for the quarter at $447 million. Itron's CEO, Tom Deitrich, emphasized the company's commitment to grid modernization and resilience, particularly in light of extreme weather events.
The company's Grid Edge Intelligence platform was highlighted as a key technology for providing visibility and control at the edge of the grid. Itron's partnerships with GE, Vernova, and Schneider have strengthened its technology adaptation capabilities. The firm anticipates positive price-cost dynamics in 2024, although it advises caution when comparing growth from 2024 to 2025 due to an expected normalization of $125 million in catch-up revenue.
The company's sustainability efforts have resulted in a significant 50% reduction in greenhouse gas emissions. Despite a slight decline in margins in the Outcomes segment due to a mix of different solutions, Itron's strong pipeline of opportunities aligns with infrastructure, environmental, and consumer macro trends. These recent developments underscore Itron's dedication to addressing critical needs in grid modernization and resilience.
InvestingPro Insights
As investors evaluate the recent insider trading activity at Itron, Inc. (NASDAQ:ITRI), it's beneficial to consider the company's financial health and market performance. Itron has shown a strong revenue growth in the last twelve months as of Q2 2024, with a significant 22.16% increase. This growth is coupled with a robust gross profit margin of 34.01%, reflecting the company's ability to maintain profitability amidst its expansion.
The company's P/E ratio, a key indicator of market expectations about the company's earnings growth, stands at 24.69, adjusted to 23.76 for the last twelve months as of Q2 2024. This suggests that investors are optimistic about Itron's future earnings potential. Additionally, the company's PEG ratio of 0.06 indicates that the stock may be undervalued based on its earnings growth rate, making it an interesting point of consideration for value investors.
Two InvestingPro Tips that could be particularly relevant for investors in light of the insider sale are:
- Analysts have revised their earnings upwards for the upcoming period, hinting at potential positive momentum for Itron's future performance.
- The company's cash flows are strong enough to sufficiently cover interest payments, which is reassuring for debt holders and equity investors alike.
For those interested in a deeper dive into the company's financials and future prospects, there are additional InvestingPro Tips available, which can be found at https://www.investing.com/pro/ITRI. These tips provide further insights and could be valuable in making informed investment decisions regarding Itron, Inc.
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