Director At California Water Servs Gr Buys $123K of Stock

Disclosed in the latest SEC filing, a significant insider purchase on June 7, involves Scott L Morris, Director at California Water Servs Gr CWT.

What Happened: Morris made a significant move by purchasing 2,488 shares of California Water Servs Gr as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $123,454.

During Friday's morning session, California Water Servs Gr shares down by 1.43%, currently priced at $48.52.

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: Delving into Financials

Positive Revenue Trend: Examining California Water Servs Gr's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 106.52% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Utilities sector.

Analyzing 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 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.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 19.53 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 3.03 is lower than the industry average, implying a discounted valuation for California Water Servs Gr's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 13.1 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

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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Delving Into the Significance 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.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

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.