Laura Wright Executes Sell Order: Offloads $174K In CMS Energy Stock

Laura Wright, Director at CMS Energy CMS, executed a substantial insider sell on February 21, according to an SEC filing.

What Happened: Wright opted to sell 2,500 shares of CMS Energy, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The transaction's total worth stands at $174,609.

The latest update on Friday morning shows CMS Energy shares down by 0.28%, trading at $70.5.

Get to Know CMS Energy Better

CMS Energy is an energy holding company with three principal businesses. Its regulated utility, Consumers Energy, provides regulated natural gas service to 1.8 million customers and electric service to 1.9 million customers in Michigan. NorthStar Clean Energy, formerly CMS Enterprises, is engaged in wholesale power generation, including contracted renewable energy. CMS sold EnerBank in October 2021.

Key Indicators: CMS Energy's Financial Health

Revenue Growth: CMS Energy's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 2.0%. This signifies a substantial 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.

Navigating Financial Profits:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 44.09%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): CMS Energy's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.876885.

Debt Management: CMS Energy's debt-to-equity ratio stands notably higher than the industry average, reaching 2.07. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: CMS Energy's P/E ratio of 21.23 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.81 is above industry norms, reflecting an elevated valuation for CMS Energy's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): CMS Energy's EV/EBITDA ratio, surpassing industry averages at 12.31, positions it with an above-average valuation in the market.

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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Why Insider Transactions Are Important

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.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Transaction Codes To Focus On

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes 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 CMS Energy's Insider Trades.

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