Insider Move: Robert Robotti Invests $99K In Tidewater Stock

A new SEC filing reveals that Robert Robotti, Director at Tidewater TDW, made a notable insider purchase on December 18,.

What Happened: Robotti made a significant move by purchasing 2,067 shares of Tidewater as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $99,758.

Tidewater shares are trading up 3.2% at $51.0 at the time of this writing on Thursday morning.

Delving into Tidewater's Background

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: Financial Performance Dissected

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. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.

Key Insights into Profitability Metrics:

• Gross Margin: Achieving a high gross margin of 28.9%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Tidewater's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.88.

Debt Management: With a below-average debt-to-equity ratio of 0.58, Tidewater adopts a prudent financial strategy, indicating a balanced approach to debt management.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 14.49 is lower than the industry average, implying a discounted valuation for Tidewater's stock.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 2.02, 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): Tidewater's EV/EBITDA ratio at 6.41 suggests potential undervaluation, falling below industry averages.

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

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Why Pay Attention to Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

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.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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