Eye On Growth: Shelly M Esque Adds $112K Of California Water Servs Gr Stock To Portfolio

On March 7, Shelly M Esque, Board Member at California Water Servs Gr CWT executed a significant insider buy, as disclosed in the latest SEC filing.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Esque 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.

Monitoring the market, California Water Servs Gr's shares up by 0.71% at $46.57 during Friday's morning.

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.

California Water Servs Gr's Economic Impact: An Analysis

Revenue Growth: California Water Servs Gr's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 6.76%. This indicates 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.

Interpreting Earnings Metrics:

• Gross Margin: With a low gross margin of -23.85%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry 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: California Water Servs Gr's debt-to-equity ratio is below the industry average. With a ratio of 0.87, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Assessing 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: With a lower-than-average P/S ratio of 3.32, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in 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: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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The Importance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as 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 California Water Servs Gr's Insider Trades.

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