Tidewater EVP Trades Company's Stock

David Darling, EVP at Tidewater TDW, disclosed an insider sell on May 10, according to a recent SEC filing.

What Happened: Darling's decision to sell 25,127 shares of Tidewater was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value of the sale is $2,739,069.

Monitoring the market, Tidewater's shares up by 0.2% at $107.18 during Friday's morning.

Get to Know Tidewater Better

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.

Financial Milestones: Tidewater's Journey

Revenue Growth: Over the 3 months period, Tidewater showcased positive performance, achieving a revenue growth rate of 66.32% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.

Key Profitability Indicators:

• Gross Margin: Achieving a high gross margin of 29.95%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Tidewater's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.9.

Debt Management: Tidewater's debt-to-equity ratio is below the industry average at 0.68, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: Tidewater's P/E ratio of 42.45 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 5.0, 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): The company's EV/EBITDA ratio 15.76 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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The Relevance of Insider Transactions

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.

Deciphering Transaction Codes in Insider Filings

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 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.