In a recent move that signals confidence in the utility company, Timothy Cawley, the Chairman, President, and CEO of Consolidated Edison Inc. (NYSE:ED), has purchased shares worth approximately $7,244. The acquisition, which took place under the company's Stock Purchase Plan, involved 79.771 shares of common stock at a price of $90.81 each.
The transaction, dated March 29, 2024, was reported in a Form 4 filing with the Securities and Exchange Commission (SEC). This purchase increases Cawley's direct holdings in the company to 86,412.461 shares. Additionally, the filing noted that Timothy Cawley's indirect holdings through the company's THRIFT plan saw a slight increase, adding 0.090 shares to a total of 4.387 shares held indirectly.
The purchase of shares by an insider like Cawley often garners attention from investors, as it can be seen as a sign of the executive's optimism about the company's future prospects. Consolidated Edison, a provider of electric and gas utility services, is a staple in the New York metropolitan area and has been a consistent player in the energy sector.
Investors and market watchers typically monitor insider transactions for insights into how the leading figures in a company are acting on their stock. The recent acquisition by Cawley is a notable event, as it represents a tangible commitment by the CEO to the company's performance and value.
The Form 4 filing also included a footnote explaining that the total number of shares owned by Cawley now includes 130.046 deferred stock units (DSUs) acquired on March 15, 2024, under the dividend reinvestment provision of the company's Long Term Incentive Plan. Each DSU represents one share of Consolidated Edison's common stock.
For those following the financial moves of company executives, this transaction provides a piece of the ongoing narrative of insider confidence and investment in Consolidated Edison's future.
InvestingPro Insights
Following the recent share purchase by Consolidated Edison Inc. (NYSE:ED) CEO Timothy Cawley, the company's financial health and stock performance come into focus. With a market capitalization of $31.17 billion, Consolidated Edison is trading at a P/E ratio of 12.41, indicating a potentially undervalued stock given its near-term earnings growth prospects. Moreover, the company's commitment to shareholder value is reflected in its impressive track record of raising its dividend for 49 consecutive years, a streak that is expected to continue given its current dividend yield of 3.69%.
Consolidated Edison's financial stability is further highlighted by its low PEG ratio of 0.23 and a price/book ratio of 1.47, suggesting that the company's stock may be trading at a discount relative to its earnings growth and book value. Despite a revenue decline over the last twelve months, the company has managed to maintain a robust gross profit margin of 50.5%, underpinning its operational efficiency.
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