Mark Chiplock Decides To Exercise Options At Ameresco

A substantial insider activity was disclosed on September 3, as Chiplock, EVP at Ameresco AMRC, reported the exercise of a large sell of company stock options.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Chiplock, EVP at Ameresco, a company in the Industrials sector, just exercised stock options worth 0 shares of AMRC stock with an exercise price of $0.0.

As of Wednesday morning, Ameresco shares are down by 0.47%, with a current price of $29.38. This implies that Chiplock's 0 shares have a value of $0.

About Ameresco

Ameresco Inc provides energy efficiency solutions for facilities in North America and Europe. It focuses on projects that reduce energy, also focuses on the operations 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.

A Deep Dive into Ameresco's Financials

Revenue Growth: Ameresco's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 33.91%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company shows a low gross margin of 14.88%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Ameresco's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.1.

Debt Management: Ameresco's debt-to-equity ratio stands notably higher than the industry average, reaching 1.82. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 27.59, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.04 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 19.43, Ameresco demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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The Impact of Insider Transactions on Investments

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.

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.

Essential Transaction Codes Unveiled

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as 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 Ameresco's Insider Trades.

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