Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In a recent SEC filing, it was revealed that Patricia K Wagner, Board Member at California Water Servs Gr (NYSE:CWT), made a noteworthy insider purchase on March 7,.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Wagner purchased 2,477 shares of California Water Servs Gr. The total transaction amounted to $112,381.
Monitoring the market, California Water Servs Gr's shares up by 0.71% at $46.57 during Friday's morning.
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.
A Deep Dive into California Water Servs Gr's Financials Revenue Growth: California Water Servs Gr's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 6.76%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Utilities sector.
Profitability Metrics: Unlocking Value
- Gross Margin: The company shows a low gross margin of -23.85%, suggesting potential challenges in cost control and profitability compared to its peers.
- Earnings per Share (EPS): California Water Servs Gr's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.53.
Market Valuation:
- Price to Earnings (P/E) Ratio: California Water Servs Gr's current Price to Earnings (P/E) ratio of 50.81 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.
- Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 3.32, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 17.67 positions the company as being more valued compared to industry benchmarks.
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Why Pay Attention to Insider Transactions It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
Navigating the World of Insider 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 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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