Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed in the latest SEC filing, a significant insider purchase on May 8, involves Pamela Royal, Board Member at Dominion Energy (NYSE:D).
What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Royal increased their investment in Dominion Energy by purchasing 3,258 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $167,493.
As of Thursday morning, Dominion Energy shares are up by 1.19%, currently priced at $52.77.
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 Milestones: Dominion Energy's Journey Revenue Growth: Dominion Energy's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -6.46%. This indicates a decrease 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 Utilities sector.
Evaluating Earnings Performance:
- Gross Margin: The company sets a benchmark with a high gross margin of 46.39%, reflecting superior cost management and profitability compared to its peers.
- Earnings per Share (EPS): With an EPS below industry norms, Dominion Energy exhibits below-average bottom-line performance with a current EPS of 0.78.
Exploring Valuation Metrics Landscape:
- Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 22.58, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
- Price to Sales (P/S) Ratio: The current P/S ratio of 3.09 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): A high EV/EBITDA ratio of 13.55 positions the company as being more valued compared to industry benchmarks.
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Why Insider Activity Matters in Finance Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
Transaction Codes To Focus On Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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 Dominion Energy's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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