Cheryl Norton Insider Transaction: Sells $642K American Water Works Shares for SEO
Cheryl Norton, the EVP and COO at American Water Works (AWK), recently made headlines with an insider sell, according to a Form 4 filing with the U.S. Securities and Exchange Commission. Norton sold 4,647 shares of American Water Works, totaling $642,018.
As of today, American Water Works shares are trading at $136.88, up 0.1% from the morning session. American Water Works is the largest investor-owned water and wastewater utility in the U.S., serving around 3.5 million customers across 16 states. They provide water and wastewater services for residential, commercial, and industrial customers, primarily operating in regulated markets. Additionally, they offer water services for military bases under long-term contracts with regulated-like returns.
In terms of their economic impact, American Water Works has shown positive revenue growth, with a growth rate of 13.37% over the past 3 months as of September 30, 2024. Their gross margin stands at 62.51%, indicating strong cost management and profitability compared to peers. However, their debt-to-equity ratio is higher than industry averages at 1.3, signaling increased financial risk.
When it comes to market valuation, American Water Works has a higher-than-average price-to-earnings (P/E) ratio of 27.13 and a price-to-sales (P/S) ratio of 5.91, suggesting overvaluation. Their enterprise value to EBITDA (EV/EBITDA) ratio of 15.72 also exceeds industry averages, but their market capitalization is elevated, indicating substantial size and strong market recognition.
Insider transactions, like Norton’s recent sell, can provide valuable insights for investors. While insider sells may not always indicate a bearish view, they should be considered alongside other investment factors. Insiders are required to disclose their transactions through a Form 4 filing within two business days of the transaction, providing transparency to investors.
Overall, understanding insider activity and transaction codes can help investors make informed decisions. With a comprehensive approach that considers various factors, including insider transactions, investors can gain valuable insights into a company’s performance and potential future movements in the market.
