Energy Services of America Corp (NYSE:OTC:ESOA) President Douglas V. Reynolds has purchased additional shares in the company, according to a recent filing with the Securities and Exchange Commission. On June 7, 2024, Reynolds acquired 2,000 shares of common stock at a weighted average price of $7.15 per share, totaling $14,300.
This transaction has increased Reynolds' direct ownership in the company to 1,463,051 shares. Additionally, the filing disclosed indirect holdings through family and retirement accounts, with 437,147 shares held for his children and 7,176 shares in a 401(k) retirement plan.
Investors often monitor insider transactions as they can provide insights into executives' confidence in the company's future performance. The purchase by Reynolds, who holds multiple roles including President and Director, could be seen as a positive signal.
The filing was signed on behalf of Reynolds by Charles Crimmel on June 11, 2024. Energy Services of America Corp, headquartered in Huntington, West Virginia, operates in the water, sewer, pipeline, and power line construction industry.
InvestingPro Insights
Energy Services of America Corp (NYSE:ESOA) has recently seen significant insider trading activity, with President Douglas V. Reynolds increasing his stake in the company. Such actions often suggest confidence in the company’s prospects, and looking at the InvestingPro data, there are metrics that could support this optimism.
The company boasts a strong P/E Ratio of 11.88, indicating that investors might find the stock reasonably valued relative to its earnings. Moreover, Energy Services of America has experienced impressive revenue growth, with a 50.77% increase in the last twelve months as of Q2 2024. This substantial growth is a clear indicator of the company's expanding operations and potential for future profitability.
Reflecting on the company's performance over the long term, one of the InvestingPro Tips highlights a high return over the last decade, which, coupled with a significant price uptick of 92.52% over the last six months, could be a signal to investors of the stock's strong momentum.
While the company suffers from weak gross profit margins, currently at 12.51%, the high returns and revenue growth might outweigh concerns for some investors. Additionally, the company has been profitable over the last twelve months, which is always a positive sign for potential and current investors.
For those interested in delving deeper into the financial health and future prospects of Energy Services of America, there are additional InvestingPro Tips available. These tips can provide more nuanced insights into the company's financials and market performance. To access these valuable tips, visit https://www.investing.com/pro/ESOA and remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, there are 6 more tips listed on InvestingPro that could further guide investment decisions regarding Energy Services of America Corp.
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