Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A substantial insider sell was reported on June 10, by JON BARFIELD, Director at CMS Energy (NYSE:CMS), based on the recent SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday outlined that BARFIELD executed a sale of 2,360 shares of CMS Energy with a total value of $143,458.
CMS Energy shares are trading down 0.18% at $60.52 at the time of this writing on Monday morning.
About CMS Energy CMS Energy is an energy holding company with three principal businesses. Its regulated utility, Consumers Energy, provides regulated natural gas service to 1.8 million customers and electric service to 1.9 million customers in Michigan. CMS Enterprises is engaged in wholesale power generation, including contracted renewable energy. CMS sold EnerBank in October 2021.
CMS Energy's Financial Performance Revenue Challenges: CMS Energy's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -4.73%. This indicates a decrease in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Utilities sector.
Key Insights into Profitability Metrics:
- Gross Margin: The company faces challenges with a low gross margin of 42.97%, suggesting potential difficulties in cost control and profitability compared to its peers.
- Earnings per Share (EPS): CMS Energy's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.96.
Evaluating Valuation:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 18.48 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: The current P/S ratio of 2.42 is above industry norms, reflecting an elevated valuation for CMS Energy's stock and potential overvaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 11.42 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
The Relevance of Insider Transactions Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
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.
Understanding Crucial Transaction Codes Examining transactions, investors often concentrate on those unfolding in the open market, meticulously 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 indicates 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 CMS Energy's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.