Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A substantial insider sell was reported on May 17, by Jerry L Peters, Director at Summit Midstream Partners (NYSE:SMLP), based on the recent SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Friday outlined that Peters executed a sale of 10,000 shares of Summit Midstream Partners with a total value of $340,300.
Summit Midstream Partners's shares are actively trading at $33.72, experiencing a down of 0.0% during Friday's morning session.
All You Need to Know About Summit Midstream Partners Summit Midstream Partners LP is a United States-based energy solutions provider involved in the oil and gas industry. The company develops, owns, and operates midstream energy infrastructure assets. The company conduct and reports operations in the midstream energy industry through five reportable segments: Northeast, Rockies, Permian, Piceance, and Barnett. It offers systems that gather natural gas from pad sites, wells, and central receipt points connected to the company's systems with provisions to supply to processing plants, contractors, and end-users. The Majority of its assets are located in the producing areas of unconventional resource basins in the continental United States. It derives the majority of its revenues from the Piceance.
Key Indicators: Summit Midstream Partners's Financial Health Revenue Growth: Summit Midstream Partners's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 5.66%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.
Evaluating Earnings Performance:
- Gross Margin: The company shows a low gross margin of 30.13%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
- Earnings per Share (EPS): Summit Midstream Partners's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 12.05.
Insights into Valuation Metrics:
- Price to Earnings (P/E) Ratio: Summit Midstream Partners's P/E ratio of 4.7 is below the industry average, suggesting the stock may be undervalued.
- Price to Sales (P/S) Ratio: The current P/S ratio of 0.76 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 3.49, Summit Midstream Partners could be considered undervalued.
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Understanding the Significance of Insider Transactions Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
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.
Essential Transaction Codes Unveiled Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Summit Midstream Partners's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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