Eye On Growth: Greg A Milleman Adds $80K Of California Water Servs Gr Stock To Portfolio

A new SEC filing reveals that Greg A Milleman, VP at California Water Servs Gr CWT, made a notable insider purchase on June 7,.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Friday unveiled that Milleman made a notable purchase of 1,616 shares of California Water Servs Gr, valuing at $80,185.

Tracking the Friday's morning session, California Water Servs Gr shares are trading at $48.52, showing a down of 1.43%.

Get to Know California Water Servs Gr Better

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: Financial Performance Dissected

Revenue Growth: California Water Servs Gr's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 106.52%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Utilities sector, the company excelled with a growth rate higher than the average among peers.

Exploring Profitability:

• Gross Margin: With a high gross margin of 64.59%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): California Water Servs Gr's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.21.

Debt Management: California Water Servs Gr's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.91.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: California Water Servs Gr's P/E ratio of 19.53 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 3.03 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering 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 Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Why Insider Transactions Are Important

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

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.

Exploring Key Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates 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.