Energy Servs of America Director Sold $82K In Company Stock

On August 16, a recent SEC filing unveiled that Frank Lucente, Director at Energy Servs of America ESOA made an insider sell.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Friday outlined that Lucente executed a sale of 9,190 shares of Energy Servs of America with a total value of $82,442.

The latest update on Friday morning shows Energy Servs of America shares up by 1.44%, trading at $9.14.

All You Need to Know About Energy Servs of America

Energy Services of America Corporation is engaged in providing contracting services for energy-related companies. The company is predominantly engaged in the construction, replacement, and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. It services the gas, petroleum, power, chemical, and automotive industries and does incidental work such as water and sewer projects. Energy Service's other services include liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services, and other services related to pipeline construction.

A Deep Dive into Energy Servs of America's Financials

Revenue Growth: Energy Servs of America's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 0.46%. This signifies 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 Energy sector.

Navigating Financial Profits:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 17.82%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Energy Servs of America's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.06.

Debt Management: Energy Servs of America's debt-to-equity ratio surpasses industry norms, standing at 0.66. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: The P/E ratio of 6.21 is lower than the industry average, implying a discounted valuation for Energy Servs of America's stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.43 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): With an EV/EBITDA ratio lower than industry averages at 3.82, Energy Servs of America could be considered undervalued.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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The Importance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

A Deep Dive into Insider Transaction Codes

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 Energy Servs of America's Insider Trades.

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