Jack Reynolds, Director at Energy Servs of America ESOA, disclosed an insider sell on September 23, according to a recent SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Reynolds sold 50,000 shares of Energy Servs of America. The total transaction amounted to $517,500.

The latest market snapshot at Monday morning reveals Energy Servs of America shares down by 0.1%, trading at $10.15.

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.

Energy Servs of America’s Economic Impact: An Analysis

Revenue Growth: Energy Servs of America displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 0.46%. This indicates a notable 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.

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 a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.06.

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.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 7.03 is lower than the industry average, implying a discounted valuation for Energy Servs of America’s stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.48, 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): The company’s EV/EBITDA ratio of 4.27 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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

Exploring the Significance of Insider Trading

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 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.

A Closer Look at Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.