Insider Decision: Brooks J Klimley Offloads $146K Worth Of Antero Midstream Stock

Revealing a significant insider sell on November 7, Brooks J Klimley, Board Member at Antero Midstream AM, as per the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Klimley sold 10,000 shares of Antero Midstream. The total transaction value is $146,600.

During Thursday's morning session, Antero Midstream shares up by 0.07%, currently priced at $15.19.

Discovering Antero Midstream: A Closer Look

Antero Midstream Corp is a midstream company that owns, operates, and develops midstream energy infrastructure services and production activity in the Appalachian Basin's Marcellus Shale and Utica Shale located in West Virginia and Ohio. The company has two operating segments; the Gathering and Processing segment includes a network of gathering pipelines and compressor stations that collect and process production from Antero Resources wells in West Virginia and Ohio and the Water Handling segment includes two independent systems that deliver water from sources including the Ohio River, local reservoirs and several regional waterways. It derives a majority of its revenue from the Gathering and Processing segment.

Antero Midstream's Financial Performance

Revenue Growth: Antero Midstream's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 2.14%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Energy sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company maintains a high gross margin of 64.55%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Antero Midstream exhibits below-average bottom-line performance with a current EPS of 0.21.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.49.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 18.98 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 6.4 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 11.07 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Unmasking the Significance of Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Navigating the World of Insider Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Antero Midstream's Insider Trades.

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