Smart Money Move: Jeffrey Kightlinger Grabs $112K Worth Of California Water Servs Gr Stock

Jeffrey Kightlinger, Board Member at California Water Servs Gr CWT, reported an insider buy on March 7, according to a new SEC filing.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Kightlinger increased their investment in California Water Servs Gr by purchasing 2,477 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $112,381.

In the Friday's morning session, California Water Servs Gr's shares are currently trading at $46.57, experiencing a up of 0.71%.

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.

California Water Servs Gr's Financial Performance

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. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Utilities sector.

Navigating Financial Profits:

• 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 significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.53.

Debt Management: With a below-average debt-to-equity ratio of 0.87, California Water Servs Gr adopts a prudent financial strategy, indicating a balanced approach to debt management.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 50.81, California Water Servs Gr's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 3.32, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 17.67 reflects market recognition of California Water Servs Gr's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Why Insider Transactions Are Key in Investment Decisions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Breaking Down the Significance of 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 California Water Servs Gr's Insider Trades.

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