Options Movement At Ameresco: Michael Bakas Exercises Worth $115K

On December 22, it was revealed in an SEC filing that Michael Bakas, Executive Vice President at Ameresco AMRC executed a significant exercise of company stock options.

What Happened: Bakas, Executive Vice President at Ameresco, made a strategic move by exercising stock options for 4,500 shares of AMRC as detailed in a Form 4 filing on Friday with the U.S. Securities and Exchange Commission. The transaction value amounted to $115,470.

Ameresco shares are trading, exhibiting down of 0.0% and priced at $31.46 during Friday's morning. This values Bakas's 4,500 shares at $115,470.

Delving into Ameresco's Background

Ameresco Inc provides energy efficiency solutions for facilities in North America and Europe. It focuses on projects that reduce energy, also focuses on the operation and maintenance costs of governmental, educational, utility, healthcare, and other institutional, commercial, and industrial entities facilities. Ameresco distributes solar energy products and systems, such as PV panels, solar regulators, solar charge controllers, inverters, solar-powered lighting systems, solar-powered water pumps, solar panel mounting hardware, and other system components. The company's segment includes U.S. Regions; U.S. Federal; Canada; Alternative Fuels; Non-Solar DG and All Other. It derives a majority of revenue from the U.S. Regions segment.

Key Indicators: Ameresco's Financial Health

Negative Revenue Trend: Examining Ameresco's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -24.05% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Key Insights into Profitability Metrics:

• Gross Margin: With a low gross margin of 18.99%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Ameresco's EPS is below the industry average. The company faced challenges with a current EPS of 0.41. This suggests a potential decline in earnings.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.71, caution is advised due to increased financial risk.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 35.75 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.33 is above industry norms, reflecting an elevated valuation for Ameresco'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 22.71 reflects market recognition of Ameresco's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Illuminating the Importance of Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Unlocking the Meaning of Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes 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 Ameresco's Insider Trades.

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