Louis Maltezos Backs Up Beliefs With A Notable Acquisition In Ameresco Stock Options

A substantial insider move unfolded on March 11, as Maltezos, Executive Vice President at Ameresco AMRC, reported the acquisition of stock options for 25,000 shares in an SEC filing.

What Happened: Revealed in a Form 4 filing on Monday with the U.S. Securities and Exchange Commission, Maltezos, Executive Vice President at Ameresco, strategically acquired stock options for 25,000 shares of AMRC. These options empower Maltezos to buy the company's stock at a favorable 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, Maltezos's 25,000 shares are worth $29,499.

Unveiling the Story Behind 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.

Breaking Down Ameresco's Financial Performance

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. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Evaluating Earnings Performance:

• 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): With an EPS below industry norms, Ameresco exhibits below-average bottom-line performance with a current EPS of 0.65.

Debt Management: Ameresco's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.72, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 18.22 is lower than the industry average, implying a discounted valuation for Ameresco's stock.

• 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): With an EV/EBITDA ratio of 17.87, the company's market valuation exceeds industry averages.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Uncovering the Importance of Insider Activity

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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.

Transaction Codes Worth Your Attention

When analyzing transactions, investors tend to focus on those in the open market, 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.