Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A new SEC filing reveals that Paul Dabbar, Board Member at Dominion Energy (NYSE:D), made a notable insider purchase on December 4,.
What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Dabbar increased their investment in Dominion Energy by purchasing 1,539 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $69,778.
Dominion Energy shares are trading down 0.52% at $45.89 at the time of this writing on Tuesday morning.
All You Need to Know About Dominion Energy Based in Richmond, Virginia, Dominion Energy is an integrated energy company with over 30 gigawatts of electric generation capacity and more than 90,000 miles of electric transmission and distribution lines. Dominion is constructing a rate-regulated 5.2 GW wind farm off the Virginia Beach coast.
Financial Insights: Dominion Energy Negative Revenue Trend: Examining Dominion Energy's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -3.86% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Utilities sector.
Profitability Metrics: Unlocking Value
- Gross Margin: The company sets a benchmark with a high gross margin of 48.66%, reflecting superior cost management and profitability compared to its peers.
- Earnings per Share (EPS): Dominion Energy's EPS reflects a decline, falling below the industry average with a current EPS of 0.17.
Evaluating Valuation:
- Price to Earnings (P/E) Ratio: The P/E ratio of 15.33 is lower than the industry average, implying a discounted valuation for Dominion Energy's stock.
- Price to Sales (P/S) Ratio: The current P/S ratio of 2.15 is above industry norms, reflecting an elevated valuation for Dominion Energy's stock and potential overvaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 10.44, Dominion Energy presents a potential value opportunity, as investors are paying less for each unit of EBITDA.
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Uncovering the Importance of Insider Activity Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted 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.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced 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 Dominion Energy's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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