Insider Move: Martin A Kropelnicki Invests $667K In California Water Servs Gr Stock

A notable insider purchase on March 6, was reported by Martin A Kropelnicki, Chairman at California Water Servs Gr CWT, based on the most recent SEC filing.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Kropelnicki increased their investment in California Water Servs Gr by purchasing 14,656 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $667,287.

The latest update on Wednesday morning shows California Water Servs Gr shares down by 0.0%, trading at $45.37.

All You Need to Know 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 displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 6.76%. This indicates a notable 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.

Insights into Profitability:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of -23.85%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): California Water Servs Gr's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.53.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.87.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 49.86, California Water Servs Gr's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The P/S ratio of 3.25 is lower than the industry average, implying a discounted valuation for California Water Servs Gr's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 17.53, California Water Servs Gr demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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The Importance of Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

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.

Important Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates 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.