Insider Move: Sophie M. James Invests $80K In California Water Servs Gr Stock

A significant insider buy by Sophie M. James, VP at California Water Servs Gr CWT, was executed on June 7, and reported in the recent SEC filing.

What Happened: James's recent purchase of 1,616 shares of California Water Servs Gr, disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday, reflects confidence in the company's potential. The total transaction value is $80,185.

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

All You Need to Know 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's Economic Impact: An Analysis

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. As compared to its peers, the company achieved a growth rate higher than the average among peers in Utilities sector.

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 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 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.

Evaluating 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): California Water Servs Gr's EV/EBITDA ratio, lower than industry averages at 13.1, indicates attractively priced shares.

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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Why Insider Transactions Are Important

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Essential Transaction Codes Unveiled

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.