Insider Transaction: Samuel Rubio Sells $1.60M Worth Of Tidewater Shares

It was reported on March 7, that Samuel Rubio, EVP at Tidewater TDW executed a significant insider sell, according to an SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that Rubio executed a sale of 19,641 shares of Tidewater with a total value of $1,597,991.

As of Friday morning, Tidewater shares are up by 1.64%, currently priced at $81.0.

Delving into Tidewater's Background

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.

Tidewater: Delving into Financials

Revenue Growth: Tidewater's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 62.07%. This signifies a substantial increase in the company's 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 Energy sector.

Profitability Metrics:

• Gross Margin: Achieving a high gross margin of 27.62%, the company performs well in terms of cost management and profitability within its sector.

• 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 0.72.

Debt Management: Tidewater's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.71.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 43.31 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 4.18, Tidewater's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 14.63, Tidewater demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Navigating the Impact of Insider Transactions on Investments

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Tidewater's Insider Trades.

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