Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On March 7, a substantial insider purchase was made by Gregory E Aliff, Director at California Water Servs Gr (NYSE:CWT), as per the latest SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled that Aliff made a notable purchase of 2,477 shares of California Water Servs Gr, valuing at $112,381.
Tracking the Friday's morning session, California Water Servs Gr shares are trading at $46.57, showing a up of 0.71%.
About California Water Servs Gr 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: California Water Servs Gr's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 6.76%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Utilities sector.
Key Profitability Indicators:
- Gross Margin: The company faces challenges with a low gross margin of -23.85%, suggesting potential difficulties in cost control and profitability compared to its peers.
- Earnings per Share (EPS): California Water Servs Gr's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.53.
Understanding Financial Valuation:
- Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 50.81 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 3.32 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): California Water Servs Gr's EV/EBITDA ratio, surpassing industry averages at 17.67, positions it with an above-average valuation in the market.
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Uncovering the Importance of Insider Activity In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
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.
Exploring Key Transaction Codes In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 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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