Daniel Kozlowski, Board Member at Pure Cycle (NASDAQ:PCYO), reported an insider sell on December 5, according to a new SEC filing.
What Happened: Kozlowski's decision to sell 50,000 shares of Pure Cycle was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $511,652.
During Friday's morning session, Pure Cycle shares down by 11.04%, currently priced at $12.25.
Unveiling the Story Behind Pure Cycle
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.
Key Indicators: Pure Cycle's Financial Health
Revenue Growth: Pure Cycle displayed positive results in 3 months. As of 31 August, 2024, the company achieved a solid revenue growth rate of approximately 272.92%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Utilities sector.
Profitability Metrics: Unlocking Value
Gross Margin: The company excels with a remarkable gross margin of 77.82%, indicating superior cost efficiency and profitability compared to its industry peers.
Earnings per Share (EPS): Pure Cycle's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.27.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.05.
Valuation Analysis:
Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 28.69, Pure Cycle's stock is perceived as being overvalued in the market.
Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 11.56, 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 17.41, Pure Cycle demonstrates exemplary market valuation, surpassing industry averages.
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Understanding the Significance of Insider Transactions
Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
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.
The Insider's Guide to Important Transaction Codes
Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 Pure Cycle'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.
