Robert J Sprowls Buys $1.33M Worth of American States Water Stock
American States Water’s President & CEO, Robert J Sprowls, recently disclosed an insider purchase in a new SEC filing. Sprowls acquired 17,029 shares of American States Water, totaling $1,328,449. Despite this insider activity, American States Water’s shares suffered a slight decrease of 0.87% to $77.32 in the latest market update.
American States Water Co, headquartered in California, operates as a water and utilities holding company. The company’s operations include water, electric, and contracted services. Golden State Water Company and Bear Valley Electric Service, Inc handle water and electric operations, while American States Utility Services and its subsidiaries manage contracted services. Golden State Water operates in various counties in California under the regulation of the California Public Utilities Commission. Additionally, American States Utility Services provides water services to military installations as part of its government contract. The company generates a significant portion of its revenue from water services for both commercial and residential customers.
In terms of financial performance, American States Water has shown positive growth, with a revenue increase of 14.31% in the last three months, outperforming its peers in the Utilities sector. The company boasts a robust gross margin of 73.85%, signaling efficiency and profitability compared to industry standards. Furthermore, American States Water’s earnings per share (EPS) surpasses the industry average, standing at 0.75. However, the company’s debt-to-equity ratio is higher than the industry average at 1.02, indicating a heavier reliance on borrowed funds.
Valuation metrics paint a mixed picture for American States Water. The company’s price to earnings (P/E) ratio of 24.61 suggests an overvalued stock, while the price to sales (P/S) ratio of 4.92 further supports this notion. On the other hand, the enterprise value to Earnings Before Interest, Taxes, Depreciation & Amortization (EV/EBITDA) ratio of 15.93 indicates strong market valuation compared to industry peers. Despite these metrics, the company’s market capitalization lags behind industry benchmarks.
Insider transactions, such as the recent purchase by Robert J Sprowls, can offer insights into a company’s future performance. While insider transactions should not be the sole basis for investment decisions, they can be a valuable indicator of stock movement. When insiders, including officers and directors, make new purchases, it typically signals confidence in the company’s growth potential. Conversely, insider sells may not always indicate a negative outlook on the stock.
Investors often look at transaction codes in Form 4 filings to track insider activity. A purchase is denoted by P in Box 3, while a sale is indicated by S. Codes like C represent the conversion of an option, and A signifies a grant or acquisition of securities from the company.
Overall, American States Water’s recent insider purchase and financial metrics provide valuable insights for investors looking to analyze the company’s performance and future prospects.
