A substantial insider sell was reported on September 19, by Samuel Kapourales, Director at Energy Servs of America ESOA, based on the recent SEC filing.

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.

At Friday morning, Energy Servs of America shares are down by 0.0%, trading at $10.38.

All You Need to Know About Energy Servs of America

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.

Financial Insights: Energy Servs of America

Revenue Growth: Energy Servs of America’s revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 0.46%. This indicates 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 Energy sector.

Profitability Metrics:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 17.82%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.06, Energy Servs of America showcases strong earnings per share.

Debt Management: Energy Servs of America’s debt-to-equity ratio stands notably higher than the industry average, reaching 0.66. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 7.14 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.49, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 4.32, Energy Servs of America’s EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.

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The Impact of Insider Transactions on Investments

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.

Essential Transaction Codes Unveiled

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Energy Servs of America’s Insider Trades.

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