Cheryl Norton, EVP and COO at American Water Works (NYSE:AWK), disclosed an insider sell on November 25, according to a recent SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Norton sold 4,647 shares of American Water Works. The total transaction value is $642,018.
Tracking the Tuesday's morning session, American Water Works shares are trading at $136.88, showing a up of 0.1%.
About American Water Works
American Water Works is the largest investor-owned us water and wastewater utility, serving approximately 3.5 million customers in 16 states. It provides water and wastewater services to residential, commercial, and industrial customers and operates predominantly in regulated markets. The company's nonregulated business is water services for military bases, which operates under long-term contracts with regulated-like returns.
American Water Works's Economic Impact: An Analysis
Revenue Growth: Over the 3 months period, American Water Works showcased positive performance, achieving a revenue growth rate of 13.37% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Utilities sector.
Key Insights into Profitability Metrics:
Gross Margin: The company maintains a high gross margin of 62.51%, indicating strong cost management and profitability compared to its peers.
Earnings per Share (EPS): American Water Works's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.8.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.3, caution is advised due to increased financial risk.
Market Valuation:
Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 27.13, American Water Works's stock is perceived as being overvalued in the market.
Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 5.91 suggests overvaluation in the eyes of investors, considering sales performance.
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 15.72, the company's market valuation exceeds industry averages.
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Uncovering the Importance of Insider Activity
Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
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.
The Insider's Guide to Important Transaction Codes
In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 American Water Works's Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
