Smart Money Move: Michael S Mares Jr. Grabs $80K Worth Of California Water Servs Gr Stock

On June 7, a substantial insider purchase was made by Michael S Mares Jr., Vice President at California Water Servs Gr CWT, as per the latest SEC filing.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Friday, Jr. increased their investment in California Water Servs Gr by purchasing 1,616 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $80,185.

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

Unveiling the Story Behind 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 remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 106.52%. This signifies 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 Utilities sector.

Key Insights into Profitability Metrics:

• 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 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 at 0.91, reflecting a lower dependency on debt financing and a more conservative financial approach.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 19.53 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 3.03, 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): The company's EV/EBITDA ratio 13.1 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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The Impact of Insider Transactions on Investments

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

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

The Insider's Guide to Important Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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.