Eye On Growth: Robert Robotti Adds $124K Of Tidewater Stock To Portfolio

Robert Robotti, Director at Tidewater (NYSE:TDW), disclosed an insider purchase on June 9, based on a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Robotti purchased 2,959 shares of Tidewater. The total transaction amounted to $124,958.

At Tuesday morning, Tidewater shares are down by 0.0%, trading at $45.51.

Unveiling the Story Behind Tidewater

Tidewater Inc provides marine and transportation services to the offshore energy industry. The company's vessels and associated services support all phases of offshore crude oil and natural gas (also referred to as oil and gas) exploration activities, field development, production, and maintenance, as well as windfarm development and maintenance. Its services include towing and anchor handling for mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workovers, production activities, field abandonment, dismantlement, and restoration activities; and Others. The group manages its business through five segments including the Americas, Asia Pacific, Middle East, Europe/Mediterranean, and West Africa.

Financial Milestones: Tidewater's Journey

Revenue Growth: Over the 3 months period, Tidewater showcased positive performance, achieving a revenue growth rate of 3.82% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Energy sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Profitability Metrics: Unlocking Value

• Gross Margin: The company maintains a high gross margin of 30.47%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Tidewater's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.83.

Debt Management: Tidewater's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.57.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 13.63, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.77 is above industry norms, reflecting an elevated valuation for Tidewater's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 5.48, Tidewater could be considered undervalued.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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The Relevance of Insider Transactions

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

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

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Tidewater's Insider Trades.

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