California Water Service Group director sells shares worth over $30,000 By Investing.com

California Water Service Group (NYSE:) has reported a recent transaction by director Thomas M. Krummel, who sold 555 shares of common stock at a weighted average price of $55.09 per share, totaling approximately $30,574. The sale took place on September 4, 2024, as disclosed in the latest SEC filing.

Krummel's transaction reflects a straightforward disposition of shares without the involvement of equity swaps. Following the sale, he retains ownership of 21,950.8 shares in the company. The price reported is the weighted average sale price, and the reporting person has agreed to provide full information regarding the number of shares sold at each separate price upon request by the SEC, the issuer, or a security holder of the issuer.

California Water Service Group, incorporated in Delaware with a business address in San Jose, California, operates in the water supply sector. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol CWT.

The transaction was signed on behalf of Thomas M. Krummel by Michelle R. Mortensen on the same day of the sale. Investors and market watchers often monitor insider transactions such as these for insights into executive sentiment regarding their company's stock.

In other recent news, California Water Service Group reported a significant increase in its second-quarter earnings and revenue, with operating revenue surging by 25.9% to reach $244.3 million and net income standing at $40.6 million. The company also disclosed the upcoming retirement of Ronald D. Webb, the Vice President and Chief Human Resource Officer, effective March 31, 2025. In addition, the firm completed the acquisition of Kings Mountain Park Mutual Water Company, expanding its service in the Bay Area.

Baird upgraded the price target for shares of California Water Service Group to $61.00, maintaining an Outperform rating. This adjustment follows the company's recent submission of the 2024 California General Rate Case, which proposes capital investments surpassing Baird's initial projections. The company has announced plans to invest over $1.6 billion in infrastructure improvements from 2025 to 2027.

California Water Service Group also remains committed to its environmental initiatives, including plans to treat approximately 101 wells for PFAS/PFOS at an estimated cost of $226 million. These recent developments demonstrate the company's proactive approach to managing its resources and addressing infrastructural needs.

InvestingPro Insights

Following the recent insider transaction at California Water Service Group (NYSE:CWT), investors may find additional context from InvestingPro metrics and tips valuable. The company, which has a strong history of dividend reliability, has been trading near its 52-week high, with a price just 0.76% below this level, indicating a strong market confidence in the stock. This is underscored by a robust 14.85% one-year price total return, reflecting a positive trend in investor sentiment.

InvestingPro data also highlights the company's solid financial performance, with a revenue growth of 24.25% over the last twelve months as of Q2 2024, suggesting that the company is expanding its operations effectively. The gross profit margin stands at a healthy 55.38%, indicating that California Water Service Group is maintaining profitability in its core business activities. Moreover, the company's return on assets (ROA) is 3.93%, which, while modest, demonstrates efficient use of company assets to generate earnings.

For those considering long-term investment, one of the InvestingPro Tips points out that California Water Service Group has raised its dividend for 31 consecutive years, and has maintained dividend payments for 54 consecutive years, which could be particularly attractive to income-focused investors. Additionally, the company's net income and sales are expected to grow this year, according to other InvestingPro Tips, providing a positive outlook for potential investors.

InvestingPro offers a comprehensive list of additional tips, including the company's P/E ratio and insights into its earnings growth. For those interested in further details, there are 6 more InvestingPro Tips available for California Water Service Group at https://www.investing.com/pro/CWT.

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