Robert Robotti Takes a Bullish Stance: Acquires $124K In Tidewater Stock

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In a recent SEC filing, it was revealed that Robert Robotti, Director at Tidewater TDW, made a noteworthy insider purchase on June 10,.

What Happened: In a Form 4 filing on Monday with the U.S. Securities and Exchange Commission, it was disclosed that Robotti bought 1,323 shares of Tidewater, amounting to a total of $124,944.

At Tuesday morning, Tidewater shares are down by 0.53%, trading at $105.3.

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.

Tidewater: Delving into 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. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.

Insights into Profitability:

  • Gross Margin: Achieving a high gross margin of 29.95%, the company performs well in terms of cost management and profitability within its sector.

  • Earnings per Share (EPS): Tidewater’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.9.

Debt Management: Tidewater’s debt-to-equity ratio is below the industry average at 0.68, reflecting a lower dependency on debt financing and a more conservative financial approach.

Assessing Valuation Metrics:

  • Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 42.01 is lower than the industry average, indicating potential undervaluation for the stock.

  • Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 4.95 suggests overvaluation in the eyes of investors, considering sales performance.

  • EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 15.61, the company’s market valuation exceeds industry averages.

Market Capitalization Perspectives: The company’s market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Why Insider Activity Matters in Finance

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

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.

Navigating the World of Insider Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals 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 Tidewater’s Insider Trades.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.

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