Eye On Growth: MICHAEL STEIN Adds $2.12M Of Genie Energy Stock To Portfolio

MICHAEL STEIN, Chief Executive Officer at Genie Energy GNE, reported an insider buy on August 6, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled that STEIN made a notable purchase of 125,000 shares of Genie Energy, valuing at $2,125,000.

The latest update on Tuesday morning shows Genie Energy shares down by 2.53%, trading at $15.04.

Discovering Genie Energy: A Closer Look

Genie Energy Ltd, through its subsidiaries, operates as a retail energy provider. It serves two reportable business segments: Genie retail energy, or GRE, and Genie renewables. The Genie retail energy segment resells energy to residential and commercial consumers in the Eastern and Midwestern United States through its portfolio of various retail energy providers. The Genie renewables segment holds controlling interests in various companies engaged in the manufacturing of solar panels, solar installation design, and solar energy project management. It generates the majority of its revenue from the Genie retail energy segment.

Key Indicators: Genie Energy's Financial Health

Revenue Growth: Genie Energy displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 13.69%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Utilities sector.

Analyzing Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 28.23%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Genie Energy exhibits below-average bottom-line performance with a current EPS of 0.3.

Debt Management: Genie Energy's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.0.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 40.61, Genie Energy's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.91, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 21.17, Genie Energy demonstrates a robust market valuation, outperforming industry benchmarks.

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.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Why Pay Attention to Insider Transactions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

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

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Unlocking the Meaning of Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Genie Energy's Insider Trades.

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