Stephen D Westhoven Implements A Sell Strategy: Offloads $1.35M In New Jersey Resources Stock

Stephen D Westhoven, President & CEO at New Jersey Resources NJR, reported an insider sell on July 16, according to a new SEC filing.

What Happened: After conducting a thorough analysis, Westhoven sold 30,000 shares of New Jersey Resources. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total transaction value is $1,351,545.

Tracking the Wednesday's morning session, New Jersey Resources shares are trading at $45.62, showing a down of 0.0%.

All You Need to Know About New Jersey Resources

New Jersey Resources is an energy services holding company with regulated and nonregulated operations. Its regulated utility, New Jersey Natural Gas, delivers natural gas to nearly 600,000 customers in the state. NJR's nonregulated businesses include solar investments primarily in New Jersey and investments in several large midstream natural gas projects.

Understanding the Numbers: New Jersey Resources's Finances

Revenue Growth: Over the 3 months period, New Jersey Resources showcased positive performance, achieving a revenue growth rate of 2.16% as of 31 March, 2024. This reflects a substantial 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.

Key Profitability Indicators:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 36.41%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): New Jersey Resources's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 1.23.

Debt Management: New Jersey Resources's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.48, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 18.1 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.61 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 13.51, New Jersey Resources demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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Navigating the Impact of Insider Transactions on Investments

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

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.

Important Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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 New Jersey Resources's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.