Board Member At Sempra Buys $67K of Stock

A significant insider buy by MICHAEL N MEARS, Board Member at Sempra SRE, was executed on March 11, and reported in the recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled that MEARS made a notable purchase of 1,000 shares of Sempra, valuing at $67,700.

During Wednesday’s morning session, Sempra shares down by 0.07%, currently priced at $68.74.

Discovering Sempra: A Closer Look

Sempra Energy serves one of the largest utility customer bases in the United States. It distributes natural gas and electricity in Southern California and owns 80% of Oncor, a transmission and distribution business in Texas. SoCalGas and San Diego Gas & Electric distribute gas to more than 20 million customers, while Oncor serves more than 10 million Texas customers. Sempra Infrastructure partners, of which Sempra holds a controlling ownership, owns and operates liquefied natural gas facilities in North America and infrastructure in Mexico.

Understanding the Numbers: Sempra’s Finances

Revenue Growth: Over the 3 months period, Sempra showcased positive performance, achieving a revenue growth rate of 7.65% as of 31 December, 2024. This reflects a substantial increase in the company’s top-line earnings. When compared to others in the Utilities sector, the company excelled with a growth rate higher than the average among peers.

Insights into Profitability:

• Gross Margin: With a high gross margin of 49.23%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Sempra’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.05.

Debt Management: Sempra’s debt-to-equity ratio is below the industry average at 1.18, reflecting a lower dependency on debt financing and a more conservative financial approach.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 15.56 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 3.33 is above industry norms, reflecting an elevated valuation for Sempra’s stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Sempra’s EV/EBITDA ratio of 14.3 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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Why Insider Transactions Are Key in Investment Decisions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

Exploring the legal landscape, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider’s new purchase, there’s a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Unlocking the Meaning of Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Sempra’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.