Vice President Of Avista Purchased $227K In Stock

A new SEC filing reveals that Scott J Kinney, Vice President at Avista AVA, made a notable insider purchase on February 13,.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Kinney purchased 6,165 shares of Avista, demonstrating confidence in the company’s growth potential. The total value of the transaction stands at $227,981.

The latest update on Friday morning shows Avista shares down by 0.0%, trading at $37.25.

Get to Know Avista Better

Avista Corp is an electric and natural gas utility company headquartered in Spokane, Washington. Avista primarily operates in the Pacific Northwest of the United States along with some operations in Juneau, Alaska. The company has two major business segments including Avista Utilities, which provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho and also provides natural gas distribution service in parts of northeastern and southwestern Oregon. Avista Utilities has electric generating facilities in Washington, Idaho, Oregon and Montana. AEL&P is a regulated utility providing electric services in Juneau, Alaska that is a wholly-owned subsidiary and the primary operating subsidiary of AERC.

Avista: Delving into Financials

Revenue Growth: Avista’s remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 3.72%. This signifies a substantial increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Utilities sector.

Evaluating Earnings Performance:

• Gross Margin: The company excels with a remarkable gross margin of 63.93%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Avista’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.23.

Debt Management: Avista’s debt-to-equity ratio is below the industry average. With a ratio of 1.21, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 14.72 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.52 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 10.05, Avista presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Perspectives: The company’s market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Unmasking the Significance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

Essential Transaction Codes Unveiled

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies 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 Avista’s Insider Trades.

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