Bullish Move: AVI GOLDIN Shows Confidence, Acquires $545K In Genie Energy Stock

A significant insider buy by AVI GOLDIN, CFO at Genie Energy GNE, was executed on August 6, and reported in the recent SEC filing.

What Happened: In a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, it was disclosed that GOLDIN bought 32,100 shares of Genie Energy, amounting to a total of $545,700.

During Tuesday's morning session, Genie Energy shares down by 2.53%, currently priced at $15.04.

Get to Know Genie Energy Better

Genie Energy Ltd, through its subsidiaries, operates as a retail energy provider. It serves two reportable business segments: Genie retail energy, or GRE, and Genie renewables. The Genie retail energy segment resells energy to residential and commercial consumers in the Eastern and Midwestern United States through its portfolio of various retail energy providers. The Genie renewables segment holds controlling interests in various companies engaged in the manufacturing of solar panels, solar installation design, and solar energy project management. It generates the majority of its revenue from the Genie retail energy segment.

A Deep Dive into Genie Energy's Financials

Revenue Growth: Genie Energy displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 13.69%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Utilities sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company shows a low gross margin of 28.23%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Genie Energy's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.3.

Debt Management: Genie Energy's debt-to-equity ratio is below the industry average. With a ratio of 0.0, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: Genie Energy's current Price to Earnings (P/E) ratio of 40.61 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.91 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 21.17 reflects market recognition of Genie Energy's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Exploring the Significance of Insider Trading

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

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.

Deciphering Transaction Codes in Insider Filings

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Genie Energy's Insider Trades.

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