Highlighted on May 7, it was unveiled in an SEC filing that Sutton, Director at Ameresco AMRC, executed a significant transaction involving the exercise of company stock options.
What Happened: Sutton, Director at Ameresco, exercised stock options for 10,000 shares of AMRC stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The exercise price of the options was $7.3 per share.
Ameresco shares are trading down 0.0% at $12.67 at the time of this writing on Thursday morning. Since the current price is $12.67, this makes Sutton’s 10,000 shares worth $53,700.
Unveiling the Story Behind Ameresco
Ameresco Inc provides energy efficiency solutions for facilities in North America and Europe. It focuses on projects that reduce energy, also focuses on the operations and maintenance costs of governmental, educational, utility, healthcare, and other institutional, commercial, and industrial entities facilities. Ameresco distributes solar energy products and systems, such as PV panels, solar regulators, solar charge controllers, inverters, solar-powered lighting systems, solar-powered water pumps, solar panel mounting hardware, and other system components. The company’s segment includes U.S. Regions; U.S. Federal; Canada; Alternative Fuels; Non-Solar DG and All Other. It derives a majority of its revenue from the U.S. Regions segment.
Ameresco’s Economic Impact: An Analysis
Revenue Growth: Ameresco displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 18.24%. This indicates a notable increase in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Key Profitability Indicators:
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Gross Margin: The company shows a low gross margin of 14.72%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
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Earnings per Share (EPS): Ameresco’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of -0.1.
Debt Management: Ameresco’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.76, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Exploring Valuation Metrics Landscape:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 12.3 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: The current P/S ratio of 0.37 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Ameresco’s EV/EBITDA ratio at 11.53 suggests potential undervaluation, falling below industry averages.
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
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Uncovering the Importance of Insider Activity
Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
Breaking Down the Significance of Transaction Codes
When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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 Ameresco’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
