California Water Servs Gr Chairman Trades $500K In Company Stock

Martin A Kropelnicki, Chairman at California Water Servs Gr CWT, reported an insider buy on June 7, according to a new SEC filing.

What Happened: Kropelnicki demonstrated confidence in California Water Servs Gr by purchasing 10,080 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value of the transaction is $500,169.

As of Friday morning, California Water Servs Gr shares are down by 0.45%, currently priced at $49.0.

About 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: A Financial Overview

Revenue Growth: Over the 3 months period, California Water Servs Gr showcased positive performance, achieving a revenue growth rate of 106.52% as of 31 March, 2024. This reflects 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.

Insights into Profitability:

• Gross Margin: The company sets a benchmark with a high gross margin of 64.59%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): California Water Servs Gr's EPS outshines the industry average, indicating a strong bottom-line trend 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.

Market Valuation:

• 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 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): 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: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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The Importance of Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to 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.

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

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Exploring Key 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.