Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Making a noteworthy insider sell on May 10, Quintin Kneen, Director at Tidewater (NYSE:TDW), is reported in the latest SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Friday outlined that Kneen executed a sale of 150,000 shares of Tidewater with a total value of $16,351,350.
As of Friday morning, Tidewater shares are up by 0.2%, currently priced at $107.18.
Discovering Tidewater: A Closer Look 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.
A Deep Dive into Tidewater's Financials Revenue Growth: Tidewater's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 66.32%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Energy sector.
Navigating Financial Profits:
- Gross Margin: The company excels with a remarkable gross margin of 29.95%, indicating superior cost efficiency and profitability compared to its industry peers.
- Earnings per Share (EPS): Tidewater's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.9.
Valuation Metrics: A Closer Look
- Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 42.45 is lower than the industry average, indicating potential undervaluation for the stock.
- Price to Sales (P/S) Ratio: The current P/S ratio of 5.0 is above industry norms, reflecting an elevated valuation for Tidewater's stock and potential overvaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Tidewater's EV/EBITDA ratio of 15.76 exceeds industry averages, indicating a premium valuation in the market
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Illuminating the Importance of Insider Transactions It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Understanding Crucial Transaction Codes Examining transactions, investors often concentrate on those unfolding 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 Tidewater's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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