Scott Dols V, Director at OPAL Fuels OPAL, disclosed an insider purchase on May 27, based on a new SEC filing.
What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, V purchased 50,232 shares of OPAL Fuels, demonstrating confidence in the company’s growth potential. The total value of the transaction stands at $128,749.
OPAL Fuels shares are trading up 5.11% at $3.29 at the time of this writing on Wednesday morning.
All You Need to Know About OPAL Fuels
OPAL Fuels Inc is a fully integrated, nationwide leader in the production and distribution of low-carbon intensity renewable natural gas. The company is also engaged in the marketing and distribution of RNG to heavy-duty trucking and other hard-to-de-carbonize industrial sectors. The company designs, develops, constructs, operates, and services Fueling Stations for trucking fleets across the country that use natural gas to displace diesel as their transportation fuel. The company derives revenue from the sale of Renewable Power, design, development, construction, and service of Fueling Stations, and sales of RNG produced by OPAL and third parties as pipeline-quality natural gas.
OPAL Fuels: Financial Performance Dissected
Revenue Growth: OPAL Fuels’s remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 31.49%. This signifies a substantial increase in the company’s top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.
Holistic Profitability Examination:
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Gross Margin: The company excels with a remarkable gross margin of 31.34%, indicating superior cost efficiency and profitability compared to its industry peers.
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Earnings per Share (EPS): OPAL Fuels’s EPS is below the industry average. The company faced challenges with a current EPS of -0.01. This suggests a potential decline in earnings.
Debt Management: With a high debt-to-equity ratio of 5.4, OPAL Fuels faces challenges in effectively managing its debt levels, indicating potential financial strain.
In-Depth Valuation Examination:
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Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 156.5 suggests caution, as the stock may be overvalued in the eyes of investors.
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Price to Sales (P/S) Ratio: The P/S ratio of 0.27 is lower than the industry average, implying a discounted valuation for OPAL Fuels’s stock in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 9.46, the company’s market valuation exceeds industry averages.
Market Capitalization Analysis: Reflecting a smaller scale, the company’s market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
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Delving Into the Significance of Insider Transactions
It’s important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.
In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Unlocking the Meaning of Transaction Codes
Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of OPAL Fuels’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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