Insider Activity Spotlight: Michael Bakas Acquires In Ameresco Stock Options

On March 11, Bakas, Executive Vice President at Ameresco AMRC, executed a strategic insider move by acquiring stock options for 25,000 shares.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Bakas, Executive Vice President at Ameresco, acquired 25,000 stock options for AMRC with an exercise price of $21.13 per share.

The Tuesday morning update indicates Ameresco shares up by 4.64%, currently priced at $22.31. At this value, Bakas's 25,000 shares are worth $29,499.

Discovering Ameresco: A Closer Look

Ameresco Inc provides energy efficiency solutions for facilities in North America and Europe. It focuses on projects that reduce energy, also focuses on the operations and maintenance costs of governmental, educational, utility, healthcare, and other institutional, commercial, and industrial entities facilities. Ameresco distributes solar energy products and systems, such as PV panels, solar regulators, solar charge controllers, inverters, solar-powered lighting systems, solar-powered water pumps, solar panel mounting hardware, and other system components. The company's segment includes U.S. Regions; U.S. Federal; Canada; Alternative Fuels; Non-Solar DG and All Other. It derives a majority of revenue from the U.S. Regions segment.

Understanding the Numbers: Ameresco's Finances

Revenue Growth: Over the 3 months period, Ameresco showcased positive performance, achieving a revenue growth rate of 33.05% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 16.81%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Ameresco's EPS reflects a decline, falling below the industry average with a current EPS of 0.65.

Debt Management: Ameresco's debt-to-equity ratio surpasses industry norms, standing at 1.72. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 18.22 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.83 is lower than the industry average, implying a discounted valuation for Ameresco's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Ameresco's EV/EBITDA ratio stands at 17.87, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

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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Understanding the Significance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

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.

Deciphering Transaction Codes in Insider Filings

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 Ameresco's Insider Trades.

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