Wayne O Manuel, Vice President at Avista (NYSE:AVA), reported an insider buy on February 13, according to a new SEC filing.
What Happened: Manuel's recent purchase of 6,084 shares of Avista, disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, reflects confidence in the company's potential. The total transaction value is $224,986.
During Friday's morning session, Avista shares up by 0.94%, currently priced at $37.6.
Get to Know Avista Better
Avista Corp is an electric and natural gas utility company headquartered in Spokane, Washington. Avista primarily operates in the Pacific Northwest of the United States along with some operations in Juneau, Alaska. The company has two major business segments including Avista Utilities, which provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho and also provides natural gas distribution service in parts of northeastern and southwestern Oregon. Avista Utilities has electric generating facilities in Washington, Idaho, Oregon and Montana. AEL&P is a regulated utility providing electric services in Juneau, Alaska that is a wholly-owned subsidiary and the primary operating subsidiary of AERC.
Avista: Financial Performance Dissected
Revenue Growth: Avista's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 3.72%. This signifies 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 Insights into Profitability Metrics:
Gross Margin: The company excels with a remarkable gross margin of 63.93%, indicating superior cost efficiency and profitability compared to its industry peers.
Earnings per Share (EPS): Avista's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.23.
Debt Management: Avista's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.21.
Valuation Analysis:
Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 14.72 is lower than the industry average, indicating potential undervaluation for the stock.
Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.52, 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 a below-average EV/EBITDA ratio of 10.05, Avista presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
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Unmasking the Significance of Insider Transactions
Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
Transaction Codes Worth Your Attention
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 Avista's Insider Trades.
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