Doran Spencer Hole Takes A Bullish Stance, Acquiring In Ameresco Stock Options

In a recent SEC filing, it was disclosed that Doran Spencer Hole, EVP and CFO at Ameresco AMRC, made a noteworthy acquisition of company stock options on March 11,.

What Happened: Uncovered in a Form 4 filing on Monday with the U.S. Securities and Exchange Commission, Hole, EVP and CFO at Ameresco, executed an insider options move. This move consisted of acquiring stock options for 20,000 shares of AMRC, granting Hole the right to purchase the company's stock at an exercise price of $21.13 per share.

The latest update on Tuesday morning shows Ameresco shares up by 4.64%, trading at $22.31. At this price, Hole's 20,000 shares are worth $23,599.

All You Need to Know 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.

Understanding the Numbers: Ameresco's Finances

Positive Revenue Trend: Examining Ameresco's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 33.05% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Insights into Profitability:

• Gross Margin: The company shows a low gross margin of 16.81%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Ameresco's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.65.

Debt Management: Ameresco's debt-to-equity ratio surpasses industry norms, standing at 1.72. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Financial Valuation:

• Price to Earnings (P/E) Ratio: Ameresco's P/E ratio of 18.22 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.83, 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): Boasting an EV/EBITDA ratio of 17.87, Ameresco demonstrates a robust market valuation, outperforming industry benchmarks.

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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Understanding the Significance of Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to 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.

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

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

Important Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed 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 Ameresco's Insider Trades.

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