Benzinga - by Benzinga Insights, Benzinga Staff Writer.
It was revealed in a recent SEC filing that Scott L Morris, Director at California Water Servs Gr (NYSE:CWT) made a noteworthy insider purchase on March 7,.
What Happened: In a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, it was disclosed that Morris bought 2,477 shares of California Water Servs Gr, amounting to a total of $112,381.
Tracking the Friday's morning session, California Water Servs Gr shares are trading at $46.57, showing a up of 0.71%.
Get to Know California Water Servs Gr Better 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.
Financial Insights: California Water Servs Gr Revenue Growth: Over the 3 months period, California Water Servs Gr showcased positive performance, achieving a revenue growth rate of 6.76% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Utilities sector.
Holistic Profitability Examination:
- Gross Margin: With a low gross margin of -23.85%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
- Earnings per Share (EPS): California Water Servs Gr's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.53.
Exploring Valuation Metrics Landscape:
- Price to Earnings (P/E) Ratio: California Water Servs Gr's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 50.81.
- Price to Sales (P/S) Ratio: The P/S ratio of 3.32 is lower than the industry average, implying a discounted valuation for California Water Servs Gr's stock in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 17.67 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.
Understanding the Significance of Insider Transactions It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Unlocking the Meaning of 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.