Patricia K Wagner Boosts Confidence With $123K Purchase Of California Water Servs Gr Stock

Disclosed in the latest SEC filing, a significant insider purchase on June 7, involves Patricia K Wagner, Board Member 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 Wagner bought 2,488 shares of California Water Servs Gr, amounting to a total of $123,454.

The latest update on Friday morning shows California Water Servs Gr shares down by 0.45%, trading 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

Revenue Growth: California Water Servs Gr displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 106.52%. This indicates a notable 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.

Holistic Profitability Examination:

• 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 notably higher than the industry average. The company achieved a positive bottom-line trend 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.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The P/E ratio of 19.53 is lower than the industry average, implying a discounted valuation for California Water Servs Gr's stock.

• 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 benchmarks at 13.1, California Water Servs Gr presents an attractive value opportunity.

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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Exploring the Significance of Insider Trading

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

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

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.