Insider Selling: Timothy Cawley Unloads $5.69M Of Consolidated Edison Stock

Revealing a significant insider sell on April 23, Timothy Cawley, Chairman at Consolidated Edison ED, as per the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Cawley sold 59,434 shares of Consolidated Edison. The total transaction value is $5,691,399.

Consolidated Edison shares are trading up 0.78% at $113.4 at the time of this writing on Thursday morning.

Unveiling the Story Behind Consolidated Edison

Con Ed is a holding company for Consolidated Edison of New York, or CECONY, and Orange & Rockland, or O&R. These utilities provide steam, natural gas, and electricity to customers in southeastern New York—including New York City—and small parts of New Jersey. The two utilities generate nearly all of Con Ed's earnings following the sale of its clean energy business to RWE in early 2023.

Financial Milestones: Consolidated Edison's Journey

Revenue Growth: Over the 3 months period, Consolidated Edison showcased positive performance, achieving a revenue growth rate of 6.53% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Utilities sector, the company excelled with a growth rate higher than the average among peers.

Key Profitability Indicators:

• Gross Margin: The company excels with a remarkable gross margin of 51.65%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Consolidated Edison's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.9.

Debt Management: Consolidated Edison's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.27.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 21.47, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 2.56, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 12.23, Consolidated Edison's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

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Why Insider Transactions Are Important

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

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

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

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 Consolidated Edison's Insider Trades.

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