Cheryl Norton Insider Selling American Water Works Shares Worth $642K

Cheryl Norton, EVP and COO at American Water Works, recently made an insider sell, according to a filing with the U.S. Securities and Exchange Commission. She sold 4,647 shares of American Water Works, totaling $642,018.

American Water Works is the largest investor-owned water and wastewater utility in the US, serving about 3.5 million customers in 16 states. They provide services to residential, commercial, and industrial customers and operate mainly in regulated markets. The company’s nonregulated business focuses on providing water services for military bases under long-term contracts with regulated-like returns.

In terms of financial performance, American Water Works has shown positive revenue growth of 13.37% over the past 3 months, outperforming its industry peers. The company has a high gross margin of 62.51%, indicating strong cost management compared to its competitors. Their earnings per share (EPS) of 1.8 also exceeds the industry average.

However, American Water Works does face challenges in debt management, with a higher-than-average debt-to-equity ratio. Their market valuation, with a price-to-earnings (P/E) ratio of 27.13, suggests that the stock may be overvalued in the market. Similarly, a higher-than-average price-to-sales (P/S) ratio and EV/EBITDA ratio also point to potential overvaluation.

Insider transactions, like Norton’s recent sell, can provide valuable insights for investors. While insider sells are not necessarily negative, they should be considered alongside other investment factors. Insiders are required to disclose their transactions through a Form 4 filing within two business days.

For investors who are interested in tracking insider activity, paying attention to the transaction codes in Form 4 filings can be informative. A P in Box 3 indicates a purchase, while an S signals a sale. Understanding these codes can help investors interpret insider activity more effectively.

Make sure to stay informed about insider trades and market updates to make well-informed investment decisions.