WEC Energy Group Director Sold $66K In Company Stock

ULICE PAYNE JR, Director at WEC Energy Group WEC, executed a substantial insider sell on August 12, according to an SEC filing.

What Happened: JR's recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled the sale of 750 shares of WEC Energy Group. The total transaction value is $66,340.

Tracking the Tuesday's morning session, WEC Energy Group shares are trading at $89.26, showing a up of 0.02%.

About WEC Energy Group

WEC Energy Group's electric and gas utility businesses serve electric and gas customers in Illinois, Michigan, Minnesota, and Wisconsin service territories. The company also owns a 60% stake in American Transmission Co. WEC's asset mix is approximately 48% electric generation and distribution, 36% gas distribution, 10% electric transmission, and 6% unregulated renewable energy.

WEC Energy Group: Delving into Financials

Decline in Revenue: Over the 3 months period, WEC Energy Group faced challenges, resulting in a decline of approximately -3.17% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Utilities sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Interpreting Earnings Metrics:

• Gross Margin: The company shows a low gross margin of 43.39%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): WEC Energy Group's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.67.

Debt Management: WEC Energy Group's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.56, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Overview:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 20.61 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 3.27 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 12.79, WEC Energy Group demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

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Navigating the Impact of Insider Transactions on Investments

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

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

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as 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 WEC Energy Group's Insider Trades.

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