Benzinga - by Benzinga Insights, Benzinga Staff Writer.
It was revealed in a recent SEC filing that Paul Dabbar, Board Member at Dominion Energy (NYSE:D) made a noteworthy insider purchase on May 8,.
What Happened: Dabbar made a significant move by purchasing 3,258 shares of Dominion Energy as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $167,493.
During Thursday's morning session, Dominion Energy shares down by 0.15%, currently priced at $52.07.
Unveiling the Story Behind Dominion Energy Based in Richmond, Virginia, Dominion Energy is an integrated energy company with over 30 gigawatts of electric generation capacity and more than 90,000 miles of electric transmission and distribution lines. Dominion is constructing a rate-regulated 5.2 GW wind farm off the Virginia Beach coast.
Financial Milestones: Dominion Energy's Journey Negative Revenue Trend: Examining Dominion Energy's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -6.46% in revenue growth, reflecting a decrease in 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.
Interpreting Earnings Metrics:
- Gross Margin: The company sets a benchmark with a high gross margin of 46.39%, reflecting superior cost management and profitability compared to its peers.
- Earnings per Share (EPS): With an EPS below industry norms, Dominion Energy exhibits below-average bottom-line performance with a current EPS of 0.78.
Analyzing Market Valuation:
- Price to Earnings (P/E) Ratio: Dominion Energy's P/E ratio of 22.58 is below the industry average, suggesting the stock may be undervalued.
- Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 3.09 suggests overvaluation in the eyes of investors, considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Dominion Energy's EV/EBITDA ratio stands at 13.55, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.
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Why Insider Activity Matters in Finance Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
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 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 Dominion Energy's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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