Insider Transaction: MARSHALL REYNOLDS Sells $556K Worth Of Energy Servs of America Shares

On December 23, a recent SEC filing unveiled that MARSHALL REYNOLDS, Board Member at Energy Servs of America ESOA made an insider sell.

What Happened: REYNOLDS opted to sell 34,713 shares of Energy Servs of America, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The transaction's total worth stands at $556,796.

At Tuesday morning, Energy Servs of America shares are down by 0.71%, trading at $14.0.

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.

Energy Servs of America: A Financial Overview

Negative Revenue Trend: Examining Energy Servs of America's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -0.19% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Energy sector.

Navigating Financial Profits:

• Gross Margin: The company shows a low gross margin of 16.79%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Energy Servs of America's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.4.

Debt Management: Energy Servs of America's debt-to-equity ratio surpasses industry norms, standing at 0.62. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The P/E ratio of 9.34 is lower than the industry average, implying a discounted valuation for Energy Servs of America's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.67 is lower than the industry average, implying a discounted valuation for Energy Servs of America's stock in relation to 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 5.77, indicates attractively priced shares.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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The Relevance of Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a 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.