Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A significant insider buy by ROBERT SPILMAN JR, Board Member at Dominion Energy (NYSE:D), was executed on May 8, and reported in the recent SEC filing.
What Happened: In a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission, it was disclosed that JR bought 3,258 shares of Dominion Energy, amounting to a total of $167,493.
As of Thursday morning, Dominion Energy shares are up by 1.19%, currently priced at $52.77.
Delving into Dominion Energy's Background 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 Milestones: Dominion Energy's Journey Decline in Revenue: Over the 3 months period, Dominion Energy faced challenges, resulting in a decline of approximately -6.46% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Utilities sector, the company excelled with a growth rate higher than the average among peers.
Key Profitability Indicators:
- Gross Margin: With a high gross margin of 46.39%, the company demonstrates effective cost control and strong profitability relative to its peers.
- Earnings per Share (EPS): Dominion Energy's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.78.
Evaluating Valuation:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 22.58 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 3.09, 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): Dominion Energy's EV/EBITDA ratio, surpassing industry averages at 13.55, positions it with an above-average valuation in the market.
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Why Pay Attention to Insider Transactions Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
Unlocking the Meaning of Transaction Codes Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes 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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