On May 8, Paul Dabbar, Director at Dominion Energy D executed a significant insider buy, as disclosed in the latest SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday unveiled that Dabbar made a notable purchase of 3,246 shares of Dominion Energy, valuing at $177,491.
The latest market snapshot at Friday morning reveals Dominion Energy shares up by 0.13%, trading at $55.07.
All You Need to Know About Dominion Energy
Based in Richmond, Virginia, Dominion Energy is an integrated energy company with over 30 gigawatts of electric generation capacity and more than 90,000 miles of electric transmission and distribution lines. Dominion is constructing a rate-regulated 5.2 GW wind farm off the Virginia Beach coast.
Dominion Energy’s Financial Performance
Revenue Growth: Over the 3 months period, Dominion Energy showcased positive performance, achieving a revenue growth rate of 12.22% as of 31 March, 2025. This reflects a substantial increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Utilities sector.
Exploring Profitability:
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Gross Margin: Achieving a high gross margin of 50.54%, the company performs well in terms of cost management and profitability within its sector.
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Earnings per Share (EPS): Dominion Energy’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.75.
Debt Management: Dominion Energy’s debt-to-equity ratio stands notably higher than the industry average, reaching 1.67. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Financial Valuation Breakdown:
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Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 21.24 suggests caution, as the stock may be overvalued in the eyes of investors.
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Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 3.11, Dominion Energy’s stock is perceived as being overvalued in the market, particularly in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 12.94, the company’s EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company’s future performance.
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
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Unmasking the Significance of Insider Transactions
Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
The Insider’s Guide to Important Transaction Codes
Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Dominion Energy’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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