Insider Selling: ULICE PAYNE JR Unloads $50K Of WEC Energy Group Stock

On November 30, a recent SEC filing unveiled that ULICE PAYNE JR, Director at WEC Energy Group WEC made an insider sell.

What Happened: JR's recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled the sale of 600 shares of WEC Energy Group. The total transaction value is $50,078.

Tracking the Friday's morning session, WEC Energy Group shares are trading at $83.62, showing a down of 0.0%.

Delving into WEC Energy Group's Background

WEC Energy Group's electric and gas utility businesses serve electric and gas customers in its Illinois, Michigan, Minnesota, and Wisconsin service territories. The company also owns a 60% stake in American Transmission Co. WEC's asset mix is approximately 49% electric generation and distribution, 36% gas distribution, 10% electric transmission, and 5% unregulated renewable generation.

Breaking Down WEC Energy Group's Financial Performance

Decline in Revenue: Over the 3 months period, WEC Energy Group faced challenges, resulting in a decline of approximately -2.28% in revenue growth as of 30 September, 2023. This signifies a reduction in the company's 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 Utilities sector.

Exploring Profitability:

• Gross Margin: The company faces challenges with a low gross margin of 43.6%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): WEC Energy Group's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.0.

Debt Management: WEC Energy Group's debt-to-equity ratio is below the industry average at 1.55, reflecting a lower dependency on debt financing and a more conservative financial approach.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 19.36 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.86 is above industry norms, reflecting an elevated valuation for WEC Energy Group's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 12.68 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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Why Insider Transactions Are Important

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Understanding Crucial Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 WEC Energy Group's Insider Trades.

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