Robert Robotti's Recent Buy: Acquires $1.01M In Tidewater Stock

A notable insider purchase on December 16, was reported by Robert Robotti, Director at Tidewater TDW, based on the most recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled that Robotti made a notable purchase of 21,147 shares of Tidewater, valuing at $1,005,872.

At Tuesday morning, Tidewater shares are up by 6.01%, trading at $49.88.

Get to Know Tidewater Better

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.

Financial Insights: Tidewater

Revenue Growth: Over the 3 months period, Tidewater showcased positive performance, achieving a revenue growth rate of 13.73% as of 30 September, 2024. This reflects 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.

Evaluating Earnings Performance:

• Gross Margin: The company excels with a remarkable gross margin of 28.9%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Tidewater's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.88.

Debt Management: Tidewater's debt-to-equity ratio is below the industry average at 0.58, reflecting a lower dependency on debt financing and a more conservative financial approach.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 13.8, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 1.93, Tidewater'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): With an EV/EBITDA ratio lower than industry averages at 6.14, Tidewater could be considered undervalued.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Key in Investment Decisions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

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

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Transaction Codes To Focus On

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 Tidewater's Insider Trades.

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