Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed on May 10, Samuel Rubio, EVP at Tidewater (NYSE:TDW), executed a substantial insider sell as per the latest SEC filing.
What Happened: Rubio's recent move involves selling 24,396 shares of Tidewater. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value is $2,619,764.
Tracking the Friday's morning session, Tidewater shares are trading at $107.18, showing a up of 0.2%.
Discovering Tidewater: A Closer Look Tidewater Inc provides offshore service vessels and marine support services to the offshore energy industry through the operation of a diversified fleet of marine service vessels. The company's vessels and associated vessel services provide support for all phases of offshore exploration, field development, and production. These services include towing of, and anchor handling for, mobile offshore drilling units; transporting supplies and remotely operated vehicle operations, and a variety of specialized services. The company operates in the following principal geographical areas the Americas, Asia Pacific, Middle East, Europe/Mediterranean, and West Africa. The majority of its revenue is derived from West Africa.
A Deep Dive into Tidewater's Financials Positive Revenue Trend: Examining Tidewater's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 66.32% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Energy sector.
Key Profitability Indicators:
- Gross Margin: The company maintains a high gross margin of 29.95%, indicating strong cost management and profitability compared to its peers.
- Earnings per Share (EPS): Tidewater's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 0.9.
Insights into Valuation Metrics:
- Price to Earnings (P/E) Ratio: The P/E ratio of 42.45 is lower than the industry average, implying a discounted valuation for Tidewater's stock.
- Price to Sales (P/S) Ratio: The current P/S ratio of 5.0 is above industry norms, reflecting an elevated valuation for Tidewater's stock and potential overvaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 15.76, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.
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Delving Into the Significance of Insider Transactions It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Cracking Transaction Codes Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.
Check Out The Full List Of Tidewater's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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