Quintin Kneen Executes Sell Order: Offloads $38.51M In Tidewater Stock

Making a noteworthy insider sell on June 14, Quintin Kneen, Director at Tidewater TDW, is reported in the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Friday showed that Kneen sold 367,094 shares of Tidewater. The total transaction amounted to $38,512,312.

The latest market snapshot at Friday morning reveals Tidewater shares down by 1.04%, trading at $102.96.

About Tidewater

Tidewater Inc provides offshore service vessels and marine support services to the offshore energy industry through the operation of a diversified fleet of marine service vessels. The company's vessels and associated vessel services provide support for all phases of offshore exploration, field development, and production. These services include towing of, and anchor handling for, mobile offshore drilling units; transporting supplies and remotely operated vehicle operations, and a variety of specialized services. The company operates in the following principal geographical areas the Americas, Asia Pacific, Middle East, Europe/Mediterranean, and West Africa. The majority of its revenue is derived from West Africa.

Tidewater's Economic Impact: An Analysis

Revenue Growth: Tidewater's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 66.32%. This indicates a substantial increase 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 Energy sector.

Interpreting Earnings Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 29.95%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Tidewater's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 0.9.

Debt Management: Tidewater's debt-to-equity ratio is below the industry average. With a ratio of 0.68, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 41.29 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 4.86 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Tidewater's EV/EBITDA ratio stands at 15.36, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Why Pay Attention to Insider Transactions

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

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Essential Transaction Codes Unveiled

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 Tidewater's Insider Trades.

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