In a recent transaction, Avangrid, Inc. (NYSE:AGR) director Alan D. Solomont purchased shares of the company's stock, according to a new SEC filing. The transaction, which took place on June 3, involved the acquisition of 141 shares at a price of $36.85 per share, totaling approximately $5,195.
This purchase was made in accordance with a Rule 10b5-1 trading plan that Solomont had previously adopted on June 14, 2023. Such plans allow company insiders to set up a predetermined schedule for buying and selling securities to avoid accusations of trading on nonpublic information.
Following this transaction, Solomont's holdings in Avangrid have increased to a total of 10,883 shares of common stock. The move demonstrates the director's ongoing commitment to the company, as he increases his stake in the electric services provider.
Investors often monitor insider transactions as they can provide insights into how the company's leadership views the stock's value and prospects. Solomont's recent purchase could be seen as a signal of confidence in the future of Avangrid.
Avangrid, based in Orange, Connecticut, is a significant player in the electric services sector and operates through its various subsidiaries. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol AGR.
InvestingPro Insights
Alan D. Solomont's recent purchase of Avangrid shares aligns with the company's current financial metrics that reflect a mix of challenges and strengths. Avangrid's market capitalization stands at a solid $13.81 billion, and the company is trading at a low Price / Book multiple of 0.69 as of the last twelve months leading up to Q1 2024. This indicates that the stock may be undervalued relative to the company's asset base, potentially offering an attractive entry point for investors like Solomont.
Despite a slight revenue decline on a quarterly basis of -1.99% in Q1 2024, Avangrid maintains a healthy gross profit margin of 35.64% over the last twelve months. This suggests that the company is effectively managing its cost of goods sold and maintaining profitability. Additionally, the company's P/E ratio is at 15.47, which, coupled with a PEG ratio of 0.49, indicates that the stock may be trading at a low price relative to near-term earnings growth expectations.
It's worth noting that Avangrid is carrying a significant debt burden, which is a factor that investors should consider. An InvestingPro Tip also highlights that the company's short-term obligations exceed its liquid assets, which could pose liquidity risks. However, analysts predict that Avangrid will be profitable this year, and the company has been profitable over the last twelve months, which may offset some concerns regarding its financial leverage.
For those interested in a deeper analysis, InvestingPro offers additional tips on Avangrid, providing a comprehensive view of the company's financial health and future prospects. To gain access to these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/AGR. With 6 more InvestingPro Tips available, investors can make more informed decisions regarding their investments in Avangrid.
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