Greg A Milleman Boosts Confidence With $73K Purchase Of California Water Servs Gr Stock

Greg A Milleman, VP at California Water Servs Gr CWT, disclosed an insider purchase on March 7, based on a new SEC filing.

What Happened: Milleman's recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, involves purchasing 1,616 shares of California Water Servs Gr. The total transaction value is $73,317.

California Water Servs Gr shares are trading up 0.71% at $46.57 at the time of this writing on Friday morning.

Delving into California Water Servs Gr's Background

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.

Understanding the Numbers: California Water Servs Gr's Finances

Revenue Growth: Over the 3 months period, California Water Servs Gr showcased positive performance, achieving a revenue growth rate of 6.76% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Utilities sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Interpreting Earnings Metrics:

• Gross Margin: The company faces challenges with a low gross margin of -23.85%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): California Water Servs Gr's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 0.53.

Debt Management: California Water Servs Gr's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.87.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 50.81 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The P/S ratio of 3.32 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): With an impressive EV/EBITDA ratio of 17.67, California Water Servs Gr demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Uncovering the Importance of Insider Activity

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per 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.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Navigating the World of Insider Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals 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 California Water Servs Gr's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.