Edison International (NYSE:EIX) President & CEO of Edison Energy, J. Andrew Murphy, has sold a substantial amount of company stock, as reported in a recent filing with the Securities and Exchange Commission. On May 10, Murphy sold 58,099 shares of Edison International common stock at prices ranging from $75.00 to $75.08, with the total transaction amounting to approximately $4,358,244.
The sale was executed through multiple trades and the reported price reflects the weighted average sale price. In accordance with SEC regulations, Murphy has committed to providing full details of the individual trades upon request.
In addition to the sale, Murphy also acquired shares through option exercises on the same day. A total of 58,099 shares were acquired at prices ranging between $54.91 and $62.50, totaling approximately $3,450,628. These transactions were conducted under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which was adopted on November 3, 2023.
The transactions have changed Murphy's holdings in the company significantly. Following the sale and acquisition of shares, Murphy now owns a total of 19,659.556 shares of common stock directly.
Investors and the market often closely watch insider transactions such as these for indications of executives' perspectives on the financial health and future prospects of their companies. Edison International, based in Rosemead, California, operates primarily in the electric services industry and is the parent company of Southern California Edison and Edison Energy.
The recent transactions by J. Andrew Murphy are part of the routine financial activities disclosed by company executives and are reported in compliance with SEC requirements.
InvestingPro Insights
Following the recent insider transactions by Edison International's President & CEO of Edison Energy, J. Andrew Murphy, investors might be curious about the financial health and valuation of the company. Edison International (NYSE:EIX) is currently trading at a high earnings multiple, with a P/E ratio of 32.67. This is notably higher than the adjusted P/E ratio for the last twelve months as of Q1 2024, which stands at 13.89. This disparity suggests a premium on current earnings relative to the company's historical performance.
An InvestingPro Tip indicates that Edison International operates with a significant debt burden, which is an important consideration for investors assessing the company's financial risk. Additionally, Edison International has shown a commitment to returning value to shareholders, having raised its dividend for 18 consecutive years, demonstrating a strong track record of dividend reliability.
From a performance standpoint, Edison International has experienced a solid return over the last three months, with a 17.62% price total return. This performance is reflected in the stock trading near its 52-week high, at 98.82% of the peak price. Moreover, Edison International's dividend yield as of the latest data stands at an attractive 4.17%, coupled with a dividend growth of 5.76% in the last twelve months as of Q1 2024.
For investors interested in a deeper dive into Edison International's financials and future prospects, there are additional InvestingPro Tips available. By visiting https://www.investing.com/pro/EIX, investors can access a total of 11 tips, which can provide further insight into the company's market position and performance. To enhance your investment research, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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