Smart Money Move: MAYBANK HAGOOD Grabs $167K Worth Of Dominion Energy Stock

A new SEC filing reveals that MAYBANK HAGOOD, Board Member at Dominion Energy D, made a notable insider purchase on May 8,.

What Happened: In a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission, it was disclosed that HAGOOD bought 3,258 shares of Dominion Energy, amounting to a total of $167,493.

At Thursday morning, Dominion Energy shares are up by 1.19%, trading at $52.77.

Unveiling the Story Behind Dominion Energy

Based in Richmond, Virginia, Dominion Energy is an integrated energy company with over 30 gigawatts of electric generation capacity and more than 90,000 miles of electric transmission and distribution lines. Dominion is constructing a rate-regulated 5.2 GW wind farm off the Virginia Beach coast.

A Deep Dive into Dominion Energy's Financials

Revenue Challenges: Dominion Energy's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -6.46%. This indicates a decrease in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Utilities sector.

Exploring Profitability:

• Gross Margin: With a high gross margin of 46.39%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Dominion Energy exhibits below-average bottom-line performance with a current EPS of 0.78.

Debt Management: Dominion Energy's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.62.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The P/E ratio of 22.58 is lower than the industry average, implying a discounted valuation for Dominion Energy's stock.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 3.09 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 13.55, Dominion Energy demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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Unmasking the Significance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

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

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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 Dominion Energy's Insider Trades.

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