On September 19, a recent SEC filing unveiled that Samuel Kapourales, Director at Energy Servs of America ESOA made an insider sell.

What Happened: Kapourales’s recent move involves selling 50,000 shares of Energy Servs of America. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $505,000.

Energy Servs of America‘s shares are actively trading at $10.71, experiencing a up of 7.1% during Thursday’s morning session.

Get to Know Energy Servs of America Better

Energy Services of America Corporation is engaged in providing contracting services for energy-related companies. The company is predominantly engaged in the construction, replacement, and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. It services the gas, petroleum, power, chemical, and automotive industries and does incidental work such as water and sewer projects. Energy Service’s other services include liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services, and other services related to pipeline construction.

A Deep Dive into Energy Servs of America’s Financials

Revenue Growth: Over the 3 months period, Energy Servs of America showcased positive performance, achieving a revenue growth rate of 0.46% as of 30 June, 2024. This reflects a substantial increase in the company’s top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Energy sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 17.82%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Energy Servs of America’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.06.

Debt Management: Energy Servs of America’s debt-to-equity ratio surpasses industry norms, standing at 0.66. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: Energy Servs of America’s P/E ratio of 6.9 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.47 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): Energy Servs of America’s EV/EBITDA ratio, lower than industry averages at 4.2, indicates attractively priced shares.

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.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Unmasking the Significance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.

In the context of legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Transaction Codes Worth Your Attention

When analyzing 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 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 Energy Servs of America’s Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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