Major Purchase Alert: Mark Prince Invests $230K In Energy Servs of America Stock

On February 18, a substantial insider purchase was made by Mark Prince, Director at Energy Servs of America ESOA, as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Prince purchased 21,000 shares of Energy Servs of America. The total transaction amounted to $230,160.

During Tuesday's morning session, Energy Servs of America shares up by 1.23%, currently priced at $9.86.

Get to Know Energy Servs of America Better

Energy Services of America Corporation is engaged in providing contracting services for energy-related companies. The company is predominantly engaged in the construction, replacement, and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. It services the gas, petroleum, power, chemical, and automotive industries and does incidental work such as water and sewer projects. Energy Service's other services include liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services, and other services related to pipeline construction.

Energy Servs of America: Delving into Financials

Negative Revenue Trend: Examining Energy Servs of America's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -0.19% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Energy sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Profitability Indicators:

• Gross Margin: The company shows a low gross margin of 16.79%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Energy Servs of America's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.4.

Debt Management: With a high debt-to-equity ratio of 0.62, Energy Servs of America faces challenges in effectively managing its debt levels, indicating potential financial strain.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 6.76 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.45 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): With a below-average EV/EBITDA ratio of 4.74, Energy Servs of America presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Delving Into the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Breaking Down the Significance of 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 Energy Servs of America's Insider Trades.

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