Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed on March 7, David Darling, EVP at Tidewater (NYSE:TDW), executed a substantial insider sell as per the latest SEC filing.
What Happened: Darling's decision to sell 17,821 shares of Tidewater was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $1,462,747.
Tidewater's shares are actively trading at $81.0, experiencing a up of 1.64% during Friday's morning session.
All You Need to Know About Tidewater Tidewater Inc provides offshore service vessels and marine support services to the offshore energy industry through the operation of a diversified fleet of marine service vessels. The company's vessels and associated vessel services provide support for all phases of offshore exploration, field development, and production. These services include towing of, and anchor handling for, mobile offshore drilling units; transporting supplies and remotely operated vehicle operations, and a variety of specialized services. The company operates in the following principal geographical areas the Americas, Asia Pacific, Middle East, Europe/Mediterranean, and West Africa. The majority of its revenue is derived from West Africa.
Key Indicators: Tidewater's Financial Health Revenue Growth: Tidewater displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 62.07%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.
Exploring Profitability:
- Gross Margin: The company excels with a remarkable gross margin of 27.62%, indicating superior cost efficiency and profitability compared to its industry peers.
- Earnings per Share (EPS): Tidewater's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 0.72.
In-Depth Valuation Examination:
- Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 43.31 is lower than the industry average, indicating potential undervaluation for the stock.
- Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 4.18 suggests overvaluation in the eyes of investors, considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Tidewater's EV/EBITDA ratio of 14.63 exceeds industry averages, indicating a premium valuation in the market
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Why Insider Transactions Are Important Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
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.
The Insider's Guide to Important Transaction Codes Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Tidewater's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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