Robert J Sprowls Takes a Bullish Stance: Acquires $1.33M In American States Water Stock

Robert J Sprowls, President & CEO at American States Water AWR, disclosed an insider purchase on March 18, based on a new SEC filing.

What Happened: Sprowls made a significant move by purchasing 17,029 shares of American States Water as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction’s total worth stands at $1,328,449.

The latest market snapshot at Tuesday morning reveals American States Water shares down by 0.87%, trading at $77.32.

Get to Know American States Water Better

American States Water Co is water and utilities holding company based in California. The segments of the firm include water, electric and contracted services. Within these segments, American States Water conducts water and electric operations through Golden State Water Company and Bear Valley Electric Service, Inc while contracted services through American States Utility Services and its subsidiaries. Golden State Water conducts its operations across various counties in California and is regulated by the California Public Utilities Commission. American States Utility Services has contracted with the U.S. government to provide water services to various military installations. The majority of the company’s revenue is derived from water services from commercial and residential customers.

Understanding the Numbers: American States Water’s Finances

Revenue Growth: Over the 3 months period, American States Water showcased positive performance, achieving a revenue growth rate of 14.31% 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: The company excels with a remarkable gross margin of 73.85%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): American States Water’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.75.

Debt Management: American States Water’s debt-to-equity ratio stands notably higher than the industry average, reaching 1.02. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 24.61, American States Water’s stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 4.92, American States Water’s stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 15.93, American States Water demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: Positioned below industry benchmarks, the company’s market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Understanding the Significance of Insider Transactions

Insider transactions shouldn’t be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Navigating the World of Insider 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 American States Water’s Insider Trades.

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