Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On January 18, a substantial insider purchase was made by Doyle Scott E., EVP at Spire (NYSE:SR), as per the latest SEC filing.
What Happened: E. made a significant move by purchasing 3,420 shares of Spire as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $199,762.
At Friday morning, Spire shares are down by 0.0%, trading at $58.2.
About Spire Spire Inc is a public utility holding company with three reportable business segments: Gas Utility , Gas Marketing and Midstream. The Gas Utility segment includes the regulated operations of Laclede Gas, Alabama Gas Corporation (Alagasco), and EnergySouth Inc. The Utilities businesses operations include the purchase, retail, distribution, and sale of natural gas in Missouri, Alabama, and Mississippi. The Gas Utility segment generates a majority of the company's revenue but is subject to seasonal fluctuations. The Gas Marketing segment includes Laclede Energy Resources, Inc, whose operations include the marketing of natural gas and related activities on a non-regulated basis and the Midstream segment includes transportation and storage of natural gas.
Key Indicators: Spire's Financial Health Revenue Growth: Spire's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -1.21%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Utilities sector.
Holistic Profitability Examination:
- Gross Margin: The company shows a low gross margin of 31.31%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
- Earnings per Share (EPS): Spire's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of -0.66.
Market Valuation:
- Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 15.12 suggests caution, as the stock may be overvalued in the eyes of investors.
- Price to Sales (P/S) Ratio: With a P/S ratio of 1.15 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 11.48 positions the company as being more valued compared to industry benchmarks.
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Navigating the Impact of Insider Transactions on Investments 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.
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.
Transaction Codes To Focus On When dissecting transactions, the focal point for investors is often those occurring 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 Spire's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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