California Water Servs Gr Director Makes $123K Stock Purchase

In a recent SEC filing, it was revealed that Shelly M Esque, Director at California Water Servs Gr CWT, made a noteworthy insider purchase on June 7,.

What Happened: Esque's recent purchase of 2,488 shares of California Water Servs Gr, disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday, reflects confidence in the company's potential. The total transaction value is $123,454.

During Friday's morning session, California Water Servs Gr shares down by 1.43%, currently priced at $48.52.

About California Water Servs Gr

California Water Service Group is a U.S. water and utilities holding company based in California. The company engages in the production, treatment, storage, distribution, and sale of water for various uses. The firm operates through its subsidiaries, which can be divided between regulated and unregulated businesses. The regulated public utilities subsidiaries operate in California, New Mexico, Washington, and Hawaii. The unregulated subsidiaries provide water utility services to private companies and municipalities. The company derives the majority of its revenue from its operations in California and, overall, from residential customers.

A Deep Dive into California Water Servs Gr's Financials

Positive Revenue Trend: Examining California Water Servs Gr's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 106.52% as of 31 March, 2024, showcasing a substantial increase 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.

Evaluating Earnings Performance:

• Gross Margin: The company maintains a high gross margin of 64.59%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): California Water Servs Gr's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.21.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.91.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The P/E ratio of 19.53 is lower than the industry average, implying a discounted valuation for California Water Servs Gr's stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 3.03, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 13.1 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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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.

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.

A Deep Dive into Insider Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of California Water Servs Gr's Insider Trades.

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