Board Member At California Water Servs Gr Buys $123K of Stock

On June 7, Carol M Pottenger, Board Member at California Water Servs Gr CWT executed a significant insider buy, as disclosed in the latest SEC filing.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday, Pottenger purchased 2,488 shares of California Water Servs Gr, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $123,454.

In the Friday's morning session, California Water Servs Gr's shares are currently trading at $49.0, experiencing a down of 0.45%.

Discovering California Water Servs Gr: A Closer Look

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 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 competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Utilities sector.

Profitability Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 64.59%, indicating superior cost efficiency and profitability compared to its industry 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 industry norms, indicating a sound financial structure with a ratio of 0.91.

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: 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): Indicated by a lower-than-industry-average EV/EBITDA ratio of 13.1, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Illuminating the Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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.

Transaction Codes Worth Your Attention

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.