Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A large exercise of company stock options by Michael Bakas, Executive Vice President at Ameresco (NYSE:AMRC) was disclosed in a new SEC filing on January 10, as part of an insider exercise.
What Happened: The latest Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission uncovered Bakas, Executive Vice President at Ameresco, exercising stock options for 5,750 shares of AMRC. The total transaction was valued at $107,190.
As of Thursday morning, Ameresco shares are down by 0.0%, with a current price of $26.77. This implies that Bakas's 5,750 shares have a value of $107,190.
Get to Know Ameresco Better Ameresco Inc provides energy efficiency solutions for facilities in North America and Europe. It focuses on projects that reduce energy, also focuses on the operation and maintenance costs of governmental, educational, utility, healthcare, and other institutional, commercial, and industrial entities facilities. Ameresco distributes solar energy products and systems, such as PV panels, solar regulators, solar charge controllers, inverters, solar-powered lighting systems, solar-powered water pumps, solar panel mounting hardware, and other system components. The company's segment includes U.S. Regions; U.S. Federal; Canada; Alternative Fuels; Non-Solar DG and All Other. It derives a majority of revenue from the U.S. Regions segment.
Financial Milestones: Ameresco's Journey Negative Revenue Trend: Examining Ameresco's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -24.05% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Profitability Metrics: Unlocking Value
- Gross Margin: The company faces challenges with a low gross margin of 18.99%, suggesting potential difficulties in cost control and profitability compared to its peers.
- Earnings per Share (EPS): Ameresco's EPS is below the industry average. The company faced challenges with a current EPS of 0.41. This suggests a potential decline in earnings.
Valuation Overview:
- Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 30.42 is lower than the industry average, indicating potential undervaluation for the stock.
- Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 1.13 as compared to the industry average, the stock might be considered overvalued based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 20.86, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.
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Why Pay Attention to Insider Transactions Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
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.
Breaking Down the Significance of Transaction Codes For investors, a primary focus lies on transactions occurring in the open market, as indicated 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 Ameresco's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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