Board Member Of Natural Gas Services Gr Makes $103K Sale

Stephen C. Taylor, Board Member at Natural Gas Services Gr NGS, disclosed an insider sell on August 22, according to a recent SEC filing.

What Happened: Taylor opted to sell 4,690 shares of Natural Gas Services Gr, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The transaction's total worth stands at $103,836.

Natural Gas Services Gr's shares are actively trading at $20.51, experiencing a down of 0.0% during Friday's morning session.

Discovering Natural Gas Services Gr: A Closer Look

Natural Gas Services Group Inc provides natural gas compression equipment and services to the energy industry. The company manufactures, fabricates, rents, sells, and maintains natural gas compressors and flare systems for oil and natural gas production and plant facilities. Its operating units include Rental, Sales, and Aftermarket services. The company generates the majority of its revenue by renting out low- to medium-horsepower compression equipment to natural gas production companies in unconventional oil and gas regions of the United States.

Key Indicators: Natural Gas Services Gr's Financial Health

Revenue Growth: Natural Gas Services Gr's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 42.79%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.

Interpreting Earnings Metrics:

• Gross Margin: The company maintains a high gross margin of 34.55%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Natural Gas Services Gr's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.34.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.66, caution is advised due to increased financial risk.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: Natural Gas Services Gr's P/E ratio of 19.35 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 1.78, Natural Gas Services Gr's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Natural Gas Services Gr's EV/EBITDA ratio stands at 7.41, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Why Insider Transactions Are Important

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

When analyzing 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 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 Natural Gas Services Gr's Insider Trades.

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