California Water Servs Gr Recent Insider Activity

Disclosed in the latest SEC filing, a significant insider purchase on June 7, involves Ronald Webb, VP at California Water Servs Gr CWT.

What Happened: In a Form 4 filing on Friday with the U.S. Securities and Exchange Commission, it was disclosed that Webb bought 1,616 shares of California Water Servs Gr, amounting to a total of $80,185.

During Friday's morning session, California Water Servs Gr shares down by 0.45%, currently priced at $49.0.

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.

A Deep Dive into California Water Servs Gr's Financials

Positive Revenue Trend: Examining California Water Servs Gr's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 106.52% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Utilities sector, the company excelled with a growth rate higher than the average among peers.

Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 64.59%, indicating strong cost management 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 1.21.

Debt Management: California Water Servs Gr's debt-to-equity ratio is below the industry average. With a ratio of 0.91, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 19.53 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 3.03, 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): With an EV/EBITDA ratio lower than industry averages at 13.1, California Water Servs Gr could be considered undervalued.

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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Unmasking the Significance of Insider Transactions

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

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.

Understanding Crucial Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring 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.