Essential Utilities, Inc.'s (NYSE:WTRG) Chief Accounting Officer, Robert A. Rubin, has sold a total of 5,565 shares of company stock on April 1, 2024, for a total value of approximately $207,073, at an average price of $37.21 per share. The transaction was part of a prearranged trading plan under Rule 10b5-1, which allows insiders to set up a trading plan for selling stocks they own in advance.
This sale has adjusted Rubin's direct holdings in Essential Utilities to 57,755.77 shares following the transaction. In addition to his direct holdings, Rubin has an indirect ownership through a 401k plan which includes 19,879.14 shares of the company's common stock.
The transaction was disclosed in a legal filing with the Securities and Exchange Commission, which also noted that the shares were disposed of as part of a planned transaction, indicating that the sale was pre-scheduled and not based on any immediate knowledge of internal company affairs.
Essential Utilities, Inc., formerly known as Aqua America Inc. , is based in Bryn Mawr, Pennsylvania, and operates in the water supply sector. The company's stock is publicly traded on the New York Stock Exchange under the trading symbol WTRG.
Investors often keep an eye on insider transactions as they provide insights into how the top executives of a company are acting on their stock. While sales made under a 10b5-1 plan are planned in advance, they still can be of interest to current and potential shareholders looking to understand the actions of the company's insiders.
InvestingPro Insights
Amidst the recent insider trading activity, Essential Utilities, Inc. (NYSE:WTRG) presents a mixed financial picture according to data from InvestingPro. The company's market capitalization stands at a robust $9.93 billion, reflecting a significant presence in the water supply sector. However, the P/E ratio, a metric often used to gauge a stock's value, is currently at 19.48, suggesting that the stock may be trading at a premium given its near-term earnings growth.
InvestingPro Tips highlight that Essential Utilities has a commendable track record of raising its dividend, doing so for 31 consecutive years, which could be a sign of the company's commitment to returning value to shareholders. Moreover, the company has maintained dividend payments for an impressive 54 years, underscoring financial stability and a shareholder-friendly policy. Investors should note that analysts predict the company will remain profitable this year, which is consistent with the company's profitability over the last twelve months.
On the downside, the company is trading at a high revenue valuation multiple and has short-term obligations that exceed its liquid assets, which could indicate potential liquidity risks. These factors, combined with the revenue decline of -10.24% over the last twelve months as of Q1 2023, may warrant cautious evaluation by investors.
For those looking to delve deeper into Essential Utilities' financial health and future prospects, InvestingPro provides an array of additional tips. By using the coupon code PRONEWS24, investors can receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, granting access to comprehensive analysis and insights that can inform investment decisions. Currently, there are 6 additional InvestingPro Tips available for WTRG at https://www.investing.com/pro/WTRG.
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