Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A notable insider purchase on December 4, was reported by Allen Vanessa Sutherland, Board Member at Dominion Energy (NYSE:D), based on the most recent SEC filing.
What Happened: Sutherland's recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, involves purchasing 2,641 shares of Dominion Energy. The total transaction value is $119,742.
Dominion Energy's shares are actively trading at $45.88, experiencing a down of 0.54% during Tuesday's morning session.
About Dominion Energy Based in Richmond, Virginia, Dominion Energy is an integrated energy company with over 30 gigawatts of electric generation capacity and more than 90,000 miles of electric transmission and distribution lines. Dominion is constructing a rate-regulated 5.2 GW wind farm off the Virginia Beach coast.
Financial Insights: Dominion Energy Revenue Challenges: Dominion Energy's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -3.86%. This indicates a decrease in top-line earnings. When compared to others in the Utilities sector, the company excelled with a growth rate higher than the average among peers.
Profitability Metrics:
- Gross Margin: The company maintains a high gross margin of 48.66%, indicating strong cost management and profitability compared to its peers.
- Earnings per Share (EPS): Dominion Energy's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.17.
Market Valuation:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 15.33 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 2.15, Dominion Energy's stock is perceived as being overvalued in the market, particularly in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 10.44, Dominion Energy presents a potential value opportunity, as investors are paying less for each unit of EBITDA.
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Why Pay Attention to Insider Transactions In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
Essential Transaction Codes Unveiled In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Dominion Energy's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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