Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A new SEC filing reveals that Gregory E Aliff, Director at California Water Servs Gr (NYSE:CWT), made a notable insider purchase on June 7,.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Friday unveiled that Aliff made a notable purchase of 2,488 shares of California Water Servs Gr, valuing at $123,454.
During Friday's morning session, California Water Servs Gr shares down by 1.43%, currently priced at $48.52.
Delving into California Water Servs Gr's Background California Water Service Group is a U.S. water and utilities holding company based in California. The company engages in the production, treatment, storage, distribution, and sale of water for various uses. The firm operates through its subsidiaries, which can be divided between regulated and unregulated businesses. The regulated public utilities subsidiaries operate in California, New Mexico, Washington, and Hawaii. The unregulated subsidiaries provide water utility services to private companies and municipalities. The company derives the majority of its revenue from its operations in California and, overall, from residential customers.
California Water Servs Gr's Financial Performance Revenue Growth: Over the 3 months period, California Water Servs Gr showcased positive performance, achieving a revenue growth rate of 106.52% as of 31 March, 2024. This reflects a substantial increase in the company's 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.
Navigating Financial Profits:
- Gross Margin: The company excels with a remarkable gross margin of 64.59%, indicating superior cost efficiency and profitability compared to its industry peers.
- Earnings per Share (EPS): California Water Servs Gr's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.21.
Market Valuation:
- Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 19.53, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
- Price to Sales (P/S) Ratio: The current P/S ratio of 3.03 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 13.1 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
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Delving Into the Significance of Insider Transactions Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Navigating the World of Insider Transaction Codes Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.
Check Out The Full List Of California Water Servs Gr's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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