Daniel Kozlowski, Board Member at Pure Cycle (NASDAQ:PCYO), disclosed an insider sell on November 26, according to a recent SEC filing.
What Happened: Kozlowski opted to sell 20,000 shares of Pure Cycle, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction's total worth stands at $262,000.
Tracking the Tuesday's morning session, Pure Cycle shares are trading at $14.3, showing a down of 0.0%.
Delving into Pure Cycle's Background
Pure Cycle Corp is a diversified land and water resource development company. It designs, constructs, manages, operates, and maintains water and wastewater systems. The firm operates in two business segments namely Water and wastewater resource development and Land development. It generates maximum revenue from the Land development segment. The company's services include water production, storage, treatment, bulk transmission to retail distribution systems, wastewater collection and treatment, irrigation water treatment and transmission, construction management, billing, and collection. The land resource development segment includes all the activities necessary to develop and sell finished lots.
Financial Milestones: Pure Cycle's Journey
Revenue Growth: Over the 3 months period, Pure Cycle showcased positive performance, achieving a revenue growth rate of 272.92% as of 31 August, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Utilities sector.
Navigating Financial Profits:
Gross Margin: The company maintains a high gross margin of 77.82%, indicating strong cost management and profitability compared to its peers.
Earnings per Share (EPS): Pure Cycle's EPS reflects a decline, falling below the industry average with a current EPS of 0.27.
Debt Management: Pure Cycle's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.05.
Analyzing Market Valuation:
Price to Earnings (P/E) Ratio: Pure Cycle's current Price to Earnings (P/E) ratio of 29.79 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.
Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 12.01, Pure Cycle's stock is perceived as being overvalued in the market, particularly in relation to sales performance.
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 18.12, Pure Cycle demonstrates exemplary market valuation, surpassing industry averages.
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
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Illuminating the Importance of Insider Transactions
Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
A Deep Dive into Insider Transaction Codes
Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as 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 Pure Cycle's Insider Trades.
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