SVP and CLO Of Black Hills Makes $404K Buy

Phillip Casey, SVP and CLO at Black Hills BKH, reported an insider buy on February 10, according to a new SEC filing.

What Happened: Casey's recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, involves purchasing 6,797 shares of Black Hills. The total transaction value is $404,149.

During Tuesday's morning session, Black Hills shares down by 0.63%, currently priced at $59.3.

Unveiling the Story Behind Black Hills

Black Hills Corp is a U.S.-based energy company that operates through its Electric Utilities, Gas Utilities, Corporate and Other segments. These segments operate in states in the Midwest and mountain regions in the U.S. The company's customers include residential, commercial, industrial, and municipal consumers. These customers are residential. Black Hills derives the majority of its revenue from its utility business group, specifically from electric utilities.

Financial Insights: Black Hills

Negative Revenue Trend: Examining Black Hills's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -1.35% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Utilities sector.

Key Profitability Indicators:

• Gross Margin: The company shows a low gross margin of 40.21%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Black Hills's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.35.

Debt Management: With a below-average debt-to-equity ratio of 1.24, Black Hills adopts a prudent financial strategy, indicating a balanced approach to debt management.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 15.26 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.96, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 11.05 is below the industry average, indicating that it may be relatively undervalued compared to peers.

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 Important

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

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.

Unlocking the Meaning of Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Black Hills's Insider Trades.

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