Tidewater Director Trades $2.00M In Company Stock

A significant insider buy by Quintin Kneen, Director at Tidewater TDW, was executed on December 16, and reported in the recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled that Kneen made a notable purchase of 41,615 shares of Tidewater, valuing at $1,999,921.

The latest market snapshot at Tuesday morning reveals Tidewater shares up by 6.01%, trading at $49.88.

Discovering Tidewater: A Closer Look

Tidewater Inc provides offshore service vessels and marine support services to the offshore energy industry through the operation of a diversified fleet of marine service vessels. The company's vessels and associated vessel services provide support for all phases of offshore exploration, field development, and production. These services include towing of, and anchor handling for, mobile offshore drilling units; transporting supplies and remotely operated vehicle operations, and a variety of specialized services. The company operates in the following principal geographical areas the Americas, Asia Pacific, Middle East, Europe/Mediterranean, and West Africa. The majority of its revenue is derived from West Africa.

Tidewater: Delving into Financials

Positive Revenue Trend: Examining Tidewater's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 13.73% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Energy sector.

Analyzing Profitability Metrics:

• Gross Margin: With a high gross margin of 28.9%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Tidewater's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.88.

Debt Management: Tidewater's debt-to-equity ratio is below the industry average. With a ratio of 0.58, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: Tidewater's P/E ratio of 13.8 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.93 is above industry norms, reflecting an elevated valuation for Tidewater's stock and potential overvaluation based 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 6.14, Tidewater could be considered undervalued.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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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.

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.

Understanding Crucial Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously 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 indicates 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 Tidewater's Insider Trades.

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