Stephen C. TaylorBoard member at Natural gas services Gr NGSannounced an insider sale on August 22, according to a recent filing with the SEC.

What happened: Taylor decided to sell 4,690 shares of Natural gas services Graccording to a Form 4 filed with the US Securities and Exchange Commission (SEC) on Thursday. The total value of the transaction is $103,836.

Natural gas services GrShares are currently trading at $20.51 and were down 0.0% during Friday’s morning session.

Discover Natural Gas Services Gr: A Closer Look

Natural Gas Services Group Inc. provides natural gas compression equipment and services to the energy industry. The company designs, manufactures, leases, sells and services natural gas compressors and flare systems for oil and natural gas production and facilities. Its business segments include rental, sales and aftermarket services. The company generates the majority of its revenue from leasing low- to medium-capacity compression equipment to natural gas production companies in unconventional oil and gas regions of the United States.

Key Indicators: Financial Health of Natural Gas Services Gr

Sales growth: Natural Gas Services Gr’s remarkable performance in 3 months is evident. As of June 30, 2024, the company achieved an impressive revenue growth rate of 42.79%This represents a significant increase in the company’s sales. In comparison to the industry, the company stands out with a growth rate that is above the average of its competitors in the energy sector.

Interpretation of earnings figures:

• Gross margin: The company has a high gross margin of 34.55%indicating strong cost management and higher profitability compared to its competitors.

• Earnings per share (EPS): Natural Gas Services Gr’s earnings per share are well above the industry average. The company has a robust earnings trend and currently generates earnings per share of 0.34.

Debt management: The company faces challenges in debt management with a debt-to-equity ratio above the industry average. With a ratio of 0.66Due to the increased financial risk, caution is advised.

Valuation metrics:

• Price-earnings ratio (P/E): The P/E ratio of Natural Gas Services Gr is 19.35 is below the industry average, suggesting that the stock may be undervalued.

• Price-to-sales ratio (P/S): With an above-average P/S ratio of 1.78The Natural Gas Services Gr share is perceived by the market as overvalued, especially in relation to sales development.

• EV/EBITDA analysis (enterprise value in relation to earnings before interest, taxes, depreciation and amortization): The EV/EBITDA ratio of Natural Gas Services Gr is 7.41and thus exceeds the industry benchmarks. This gives the company an above-average market valuation.

Market capitalization perspectives: The company’s market capitalization is below the industry average, indicating a relatively small size compared to peers. This positioning can be influenced by factors such as perceived growth potential or operating size.

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Why insider transactions are important

Insider transactions are more of a piece of the puzzle than a complete picture when it comes to investment decisions.

According to Section 12 of the Securities Exchange Act of 1934, an “insider” is any officer, director, or beneficial owner who owns more than ten percent of a company’s stock. This includes senior management and large hedge funds. These insiders must report their transactions on a Form 4, which must be filed within two business days of the transaction.

Highlighted by the new purchase by a company insider, there are positive expectations regarding an increase in the share price.

However, insider sales do not necessarily indicate a pessimistic assessment and can have various reasons.

The insider’s guide to important transaction codes

When analyzing transactions, investors typically focus on the open market transactions listed in Table I of Form 4. P in Box 3 indicates a purchase, while S means a sale. Transaction code C signals the conversion of an option and the transaction code A means a grant, allocation or other acquisition of securities of the company.

View the full list of Natural Gas Services Gr insider trades.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.