California Water Servs Gr Insider Trades SendAa Signal

A significant insider buy by Thomas M Krummel, Board Member at California Water Servs Gr CWT, was executed on March 7, and reported in the recent SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Krummel purchased 2,477 shares of California Water Servs Gr. The total transaction amounted to $112,381.

Tracking the Friday's morning session, California Water Servs Gr shares are trading at $46.57, showing a up of 0.71%.

Get to Know California Water Servs Gr Better

California Water Service Group is a U.S. water and utilities holding company based in California. The company engages in the production, treatment, storage, distribution, and sale of water for various uses. The firm operates through its subsidiaries, which can be divided between regulated and unregulated businesses. The regulated public utilities subsidiaries operate in California, New Mexico, Washington, and Hawaii. The unregulated subsidiaries provide water utility services to private companies and municipalities. The company derives the majority of its revenue from its operations in California and, overall, from residential customers.

Key Indicators: California Water Servs Gr's Financial Health

Revenue Growth: Over the 3 months period, California Water Servs Gr showcased positive performance, achieving a revenue growth rate of 6.76% as of 31 December, 2023. This reflects 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.

Holistic Profitability Examination:

• Gross Margin: The company shows a low gross margin of -23.85%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 0.53, California Water Servs Gr showcases strong earnings per share.

Debt Management: With a below-average debt-to-equity ratio of 0.87, California Water Servs Gr adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 50.81 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 3.32, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 17.67, the company's market valuation exceeds industry averages.

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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Uncovering the Importance of Insider Activity

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

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.

A Deep Dive into Insider 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 California Water Servs Gr's Insider Trades.

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