In a recent move that signals confidence in Consolidated Edison Inc (NYSE:ED), the company's VP & Controller, Joseph Miller, made a purchase of company stock valued at approximately $1,153. The transaction, which took place on March 29, 2024, involved buying shares at a price of $90.81 each.
Miller's acquisition of 12.697 shares adds to his already significant holdings in the utility company. Following the purchase, he now owns a total of 1,178.641 direct shares. Additionally, the VP & Controller holds an indirect stake of 115.772 shares through the Tax Reduction Act Stock Ownership Plan (TRASOP), which saw a modest increase of 3.408 shares during the month.
The purchase made under Consolidated Edison's Stock Purchase Plan demonstrates a continued commitment by the company's executives to invest in their own firm. It also reflects a positive sentiment towards the company's potential for growth and stability.
Investors often look to insider buying and selling as a signal of a company's health and prospects. Insider purchases, in particular, can be seen as a sign that the company's leadership believes in the firm's value and future performance.
Consolidated Edison Inc, with its headquarters in New York, is a provider of electric and other services. The company's stock is traded on the New York Stock Exchange under the ticker symbol ED.
InvestingPro Insights
Following the insider purchase by Consolidated Edison Inc's (NYSE:ED) VP & Controller, Joseph Miller, InvestingPro data shows the company with a market capitalization of $31.17 billion. The utility company, known for its stability, is trading at a price-to-earnings (P/E) ratio of 12.41, which suggests that the stock could be undervalued relative to its earnings potential. This is further underlined by an adjusted P/E ratio for the last twelve months as of Q4 2023, which stands at 17.4.
An InvestingPro Tip highlights that Consolidated Edison has raised its dividend for 49 consecutive years, showcasing a strong commitment to returning value to shareholders. This is consistent with the company's latest dividend yield of 3.69%, which is attractive to investors seeking steady income streams. Additionally, the company is also noted for its low price volatility, an InvestingPro Tip that would be of interest to investors who prioritize stability in their investments.
InvestingPro data also reveals a gross profit margin of 50.5% for the last twelve months as of Q4 2023, indicating that Consolidated Edison efficiently manages its cost of sales relative to its revenue. However, it is important to note that the company's revenue has declined by 6.43% during the same period, which investors might want to consider when evaluating the stock.
For those looking to delve deeper into the financials and future projections of Consolidated Edison, more InvestingPro Tips can be found at https://www.investing.com/pro/ED. Plus, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes numerous additional tips to inform their investment decisions.
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